Respondents indicate that the market for finance has become rich
and varied and thus multiple sources of capital and funding are
available to the agribusiness industry, including private equity,
bank debt, sovereign wealth funds and the capital markets. This
supports the findings of our 2012 survey, which noted a variety of
finance sources in use in the agribusiness sector.
Over half of respondents see some improvement in the
availability of finance, with 12 per cent saying that the
environment has substantially improved. That said, nearly a quarter
of respondents (23 per cent) observe a reduced availability of
"Availability has improved generally as
the world recovers from the banking
Ian Hanrahan, Director consumer & agribusiness,
Respondents also note that while finance is generally available
lenders are still quite conservative compared to pre-2008. They
point to the fact that non-specialist agribusiness lenders have
largely withdrawn from the market, but comment that this may change
with improving levels of liquidity.
Respondents take the view that farming and agribusiness is not
the most attractive sector for lenders because of the thin margins
that exist and because the sector is susceptible to unusually high
levels of volatility. Even so, sentiment appears to be
The United States and China are expected by respondents to be by
far the biggest investors in the global food and agribusiness
sector. Our survey highlights China as the most significant new
factor in the industry in the last few years, with the US
continuing to be prominent. The Middle East, as a region, is seen
as only a peripheral player in the market.
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The Council announced planning policies to encourage more inner suburban retirement village and aged care development.
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