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Agriculture

The Sustainable Way Forward: Plantations International’s Approach to Agriculture and the Environment

Plantations International’s Sustainable Agriculture: Building a Better Future for All: Plantations International projects follow ecological and environmental principles, working closely with national environmental regulatory bodies. As Plantations International relies so directly on the productivity of the land, it ensures its land is used wisely and maintained for use of generations to come. Plantations International is committed to conserving natural resources through eco-efficient management strategies, performance metrics and continuous improvement focused in five key areas that are important to our long-term business success: energy and water use, waste generation and recycling, sustainable packaging, sustainable agriculture, and supply chain optimization.

Why Agriculture? ​Agriculture has become an attractive investment destination for a number of reasons. Most important of all being the strong market fundamentals in support of the sector on both the demand and supply side. An increasing population, changing demographics, reductions in arable land and climate change have led to an urgent need of more productive methods of growing food. Food and agriculture as an asset class falls under the broad investment category of real assets which are physical in nature and provide hard tangible ownership. Real assets broadly include commodities, property, infrastructure, timberland and agriculture also classified as farmland. Agriculture as a sector has been rising in prominence over the past decade reaching over 8 USD trillion in value.

Despite multiple definitions for food security there are common themes or indicators that tend to appear and underline its characterization. These include food affordability, food availability and accessibility, food quality and safety, and existing natural resources. The FAO and The Economist both measure food security on a country based on these indicators at varying degrees. Food security ought to be a priority for all countries, whether developing or developed. Although low levels of food security are commonly associated with poverty stricken countries they are also found in affluent developed countries as well. Food security rankings despite providing a decent gauge of performance are not without limitations. For example, some of wealthiest countries logically fare well in overall rankings as they have the capability and infrastructure to provide accessible, healthy food to their populations. Yet these high rankings dangerously mask their poor natural resources and resilience rank which measures food import dependency to a small degree. This raises the question, how can a country be food secure when they can be highly dependent on others for their food supply?

With offices, plantations, and representatives across Asia, Europe, and Africa, Plantations International is a multinational plantation and farm management company that specializes in providing sustainable agricultural and forestry or “agroforestry” management services for its clients. Plantations International has clients ranging from private individuals to large landholders and corporate investors. We put teamwork, innovation, and our passion for creating “Ethical & Sustainable Capital” at the heart of everything we do.

The number of people facing undernourishment and severe food insecurity is estimated to have reached 821 million – around one person out of every nine in the world – according to the Food & Agriculture Organization of the United Nations. In addition to contributing to under nutrition, food insecurity also contributes to obesity. Lack of securing healthy nutritious food has resulted in an over reliance on unhealthy processed foods. The problem of obesity is most significant in North America, but it is worrying that even Africa and Asia, which still show the lowest rates of obesity, are also experiencing an upward trend. 30% of global food production is lost after harvest or wasted in shops, households and catering services. This loss represents USD 750 billion worth of food every year at producer prices. At retail prices the loss reaches USD 3 trillion annually.

One of the first things Plantations International scientists learned is that there are several greenhouse gases responsible for warming, and humans emit them in a variety of ways. Most come from the combustion of fossil fuels in cars, factories and electricity production. The gas responsible for the most warming is carbon dioxide, also called CO2. Other contributors include methane released from landfills and agriculture (especially from the digestive systems of grazing animals), nitrous oxide from fertilizers, gases used for refrigeration and industrial processes, and the loss of forests that would otherwise store CO2. Plantations International is already seeing some of these changes occurring more quickly than they had expected. According to the Intergovernmental Panel on Climate Change, eleven of the twelve hottest years since thermometer readings became available occurred between 1995 and 2006.