Confronting Challenges in Agricultural Logistics
– Investors will discuss opportunities at next week’s Global AgInvesting conference in Dubai
BOSTON, Feb. 19, 2015 / PRNewswire – The Gulf’s prowess in energy production, financial services and international trade makes it one of the most influential and fascinating economic regions of the world. But the area remains gripped by geopolitical tensions, a challenging climate and lackluster investment in its agricultural sector. One of the most complex challenges for agriculture in the region centers on the lack of best-in-class logistics, despite remarkable food import levels of 80 to 90 percent.
Investors and agriculture industry experts will gather to discuss these challenges and the opportunities they present at Global AgInvesting Middle East, the region’s premier agriculture investment conference, at the Jumeirah Emirates Towers in Dubai next week, 23-25 February.
“What we see is a lack of quality logistics, strategic warehousing and other important infrastructure, leading to problems in the food supply chain,” said Farid Masood, director, Advisory Services & Asset Management, ICD-Islamic Development Bank Group. “For example, a country like Saudi Arabia does not have mechanized grain terminals today. As a result, you will have a seven to eight percent loss of grains.”
Investment has improved in recent years, but the current infrastructure allocation remains inadequate for the region’s modern needs. Dubai, for example, has boosted deep-freeze storage and has the space and the funding to store food in bulk. However, increased investment will need to be placed in refrigerated transportation to maintain quality.
“One challenge that is making it harder to attract investors is the lack of scale in the region,” Masood said, adding that fund managers will require time and patient capital to prove that investments are adding value, meeting food security challenges and returning a profit. “The goal of starting a fund is to show that it can be done with a profitable track record.”
Join this discussion at Global AgInvesting Middle East next week.
About Global AgInvesting
Global AgInvesting (GAI) is the world’s most well attended agriculture investment conference series and leading resource for insight into the global agricultural sector. Since 2009, GAI has hosted more than 6,500 attendees at annual events in New York, San Francisco, Singapore, London, and Dubai. GAI is a brand of HighQuest Group, a strategic advisory, media and event production company serving corporations, financial investors and governments across the global food and agribusiness value chains.
CONTACT: Michelle Marshall