Sep 22, 2023
Farmland will be a valuable investment amid climate change: expert
, BNN Bloomberg
We need to be more cautious about inflation going too rapidly down: Lenka Martinek
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Farmland and sustainable food vehicles are likely to become more valuable as climate change weighs on the global food system, according to one investment expert.
Lenka Martinek, managing partner at Sustainable Market Strategies and Nordis Capital, said investors who buy farmland or stocks in cold chain companies, which provide cooling services to keep produce fresh, will likely be rewarded as food demand exceeds supply in a warming climate.
“If agricultural land becomes more valuable because crop yields are going to be affected by climate change, then there’s probably going to be a wholesale asset allocation shift into higher valuations for agricultural land — the underlying value of the land,” said told BNN Bloomberg in a Friday interview.
Should farmland become more scarce, the value of fresh food will also grow in demand, she added.
“Investing in cold chains will increase the productivity of our food supply,” Martinek said.
As examples, she named companies like Carrier Global Corporation (CARR) and Americold Realty Trust, Inc. (COLD) that offer cooling services for freights that are intended to keep produce fresher for longer.
“If you’re going to have to invest in order to boost productivity in food supply, refrigeration is a big key,” Martinek added.
The strategy can also provide grocers with competitive pricing as they can keep produce fresh for longer and eventually discount it in order to cut down on food waste, she added.
“In order to attack food waste, for example, we could have dynamic pricing on fresh fruits and vegetables,” Martinek said.
Lenka Martinek, managing partner at Sustainable Market Strategies and Nordis Capital, said investors who buy farmland or stocks in cold chain companies, which provide cooling services to keep produce fresh, will likely be rewarded as food demand exceeds supply in a warming climate.
“If agricultural land becomes more valuable because crop yields are going to be affected by climate change, then there’s probably going to be a wholesale asset allocation shift into higher valuations for agricultural land — the underlying value of the land,” said told BNN Bloomberg in a Friday interview.
Should farmland become more scarce, the value of fresh food will also grow in demand, she added.
“Investing in cold chains will increase the productivity of our food supply,” Martinek said.
As examples, she named companies like Carrier Global Corporation (CARR) and Americold Realty Trust, Inc. (COLD) that offer cooling services for freights that are intended to keep produce fresher for longer.
“If you’re going to have to invest in order to boost productivity in food supply, refrigeration is a big key,” Martinek added.
The strategy can also provide grocers with competitive pricing as they can keep produce fresh for longer and eventually discount it in order to cut down on food waste, she added.
“In order to attack food waste, for example, we could have dynamic pricing on fresh fruits and vegetables,” Martinek said.
