Private equity and emerging markets agribusiness : building value through sustainability

Global trends such as burgeoning demographics, expansion of the consumer class, urbanization, and increasing energy and raw material needs have fueled unprecedented demand for agricultural products. Agribusiness is more than farming; it includes the manufacture and distribution of farm equipment and supplies, and the processing, storage, and distribution of farm commodities. Food security, equity, and access to food for local communities constitute additional risks, especially when agricultural production is oriented to export markets. By managing these risks and understanding the value of sustainable agribusiness, investors can realize significant opportunities across the industry. Sustainable agribusiness may generate value through efficiencies, cost reductions, market access, a broader customer base, and strong relations with local communities and regulators. By addressing sustainability issues in a thoughtful and deliberate manner, investors can avoid an array of potential business obstacles while building shared value among critical stakeholders that can influence the financial success of the agribusiness company.