Agribusiness and related food processing in the developed world has become highly sophisticated; based on superior technology, high productivity, high quality standards and increasingly strict safety regulations. While some Western companies in agriculture and food have entered emerging markets, this has tended to be via exports. Foreign direct investment (FDI) in Agribusiness within the Emerging Markets is still relative small in comparison with other industries.
JBI Equity views this as a significant opportunity, and has established itself to take advantage of an emerging trend towards FDI in agribusiness.
Emerging Markets agriculture and food sectors also possess particularly attractive and robust demand-side characteristics; which in many cases are supported by government legislation and commitment. At the same time, Agribusiness in emerging markets remains highly fragmented - creating an ideal opportunity for well-funded new entrants.