Sustainable Agricultural Investment - what is its relevance?

Hi everyone! Thanks to Trudi for finding me down under (Australia) and re-engaging me in this group. Welcom to everyone who has joined the group since it was first started! You were all probably wondering what was going on.... Anyhow.. the mission is to get this group humming and buzzing with some discussion around this topic. So here's my question - Is Sustainable agricultural investment relevant? Does it contribute to the economy? does it generate the returns you are after? and how important are those factors in assessing sustainability? Over to you now... Ruxandra

2 Answers

1. Very interesting conversation. Basically, I think we should ask ourselves the following question: what does sustainability mean to the average modern man? Considering our short lifespans, most of us may only perceive sustainability through temporary materialistic solutions, such as bottled-water, bioethanol or energy-saving light-bulbs. Indeed, mankind rarely thinks beyond its own selfish condition... Until it realizes that the protection of natural treasures is essential, for future generations to thrive. More importantly, what does the word "economy" actually mean to the majority of us? I wonder how many people would agree that our economic system can be wasteful in many ways. Wasting is the opposite of saving. Economy is preservation, not destruction. So is sustainability. Economic crisis brings about conflicts, hunger and human suffering. Money can not be the answer to everything, because we simply can not eat money. Maybe we need to look at this world less like a square, and more like a circle. We are all part of this living organism we call Earth. An organism at war against itself is condemned. Let's reflect before it's too late to evolve and try to live in harmony with our environment!

2. Agriculture plays a key role in sustainable development and economic growth. Investing in agriculture has proven to be an effective tool for alleviating poverty and enhancing food security. According to the World Bank, investing in agriculture is twice as effective in reducing poverty and contributing to GDP growth as compared to any other sector because of the multiplier effect. In addition, in emerging economies almost 70 % of the labor force is employed by the agricultural sector. Although in the past, investment in the sector has been limited, in recent years investing in sustainable agriculture has greatly increased. This increase in activity has been spurred by increased agricultural and food prices, coupled with population growth and increases in consumption patterns. Both the public and private sector understand the importance of these trends. From a business perspective, the investment returns in the sector make business sense in terms of risk versus reward. From a public sector perspective, investing in the sector ensures both food and water security and, therefore, the national security of a nation. Therefore, investing in sustainable agriculture is an important tool for development and growth.