India is one of the world’s largest rice producers and it is expected that global demand will outstrip supply significantly
The world’s natural resources are finite.
The sustained increase in prices of commodities has caused the price of key crops such as rice to increase by more than 75% over the last 10 years (IMF figures). Productive agricultural land has also increased significantly in price and this is set to be boosted by expanding populations and a general shortage of good land. As land continues to be put to other development uses, rather than agriculture, pressure grows on the remaining producers to keep up with demand from an increasing world population.
This pressure is already at intense levels and demand for staple foods such as rice is extremely strong. Global rice production is now so tight that poor weather in any of the key rice producing regions can lead to severely escalating prices.
According to the Financial Times (9 September 2009) rice farmers in India may be affected by the delayed monsoon, and some commentators believe the monsoon crop could fall as much as 20- 25%. India is one of the world’s largest rice producers and it is expected that global demand will outstrip supply significantly. Thus, there is little sign of the pressure on food producers abating.
The Market and its Demand
It is no surprise that investors are searching for less cyclical assets to boost their portfolios. We think this investment is a perfect addition to a well-diversified portfolio. Our partners have negotiated the purchase of 3,000 acres of prime rice farming land in Sierra Leone, West Africa on a 48-year lease on behalf of our clients.
Sierra Leone only produces enough rice to feed just under 64% of its population of 6,300,000 people. With each person consuming 100kg of rice a year, that is a shortfall of 230,000 tonnes. We expect to produce 9,000 tonnes of rice annually from the land and intend to sell all this production locally.
We have partnered with one of the UK’s leading alternative investment providers, offering investors the exclusive opportunity of purchasing agricultural land for rice production. Through their research and expertise, they are well placed to bring you a highly attractive investment in agricultural land:
- Initial capital growth expected to be achieved by the end of the first year alone following preparation of the land for production
- Projected income estimated at 15% per annum from high yield rice harvests
- The first harvest in January 2011 produced a 16.2% return on investment
- Full money back guarantee
- An immediate uplift in the value of the land – once prepared for production
- Annual appreciation in the land value estimated at 7% per annum
- A tangible asset held in your own name removing any default risk
- An experienced farm management team with over 17 years African farming experience
- A project that is supported and accredited by the Sierra Leone government
Thorough this investment, you will also be helping with local education & health issues, you will create local jobs and we will ensure that the harvest goes directly to the local market. Our partners want to ensure that local people benefit from the crop harvests generated, and will set aside 60 metric tonnes of rice per year, which will be given to the local community free of charge.
Minimum investments start from only £1,950 per acre, and includes a £600 one-off cultivation fee
'Direct agricultural investment is going to become the next major ‘must have’ asset class in world investment’ Hardman & Co”
Making an Investment in Green Oil
Making an investment in Green Oil is relitavely simple. We would discuss with you the options that are available, the current market performance and expected returns.
The real re-assurance with green oil is that it is asset backed - you will always hold title to this land. Contact one of our advisors for an in depth discussion or to make an investment.
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