Plantations International’s Triple Bottom Line: Sustainable Agriculture for the Environment, Climate, and People: At the heart of Plantations International is a very clear and principled code of conduct – one we expect all employees, contractors and management to live by every day. We operate under a genuine value system—our pledge—that demonstrates integrity, respect, ethical behavior, perspective and honesty as a foundation for everything we do. Plantations International aims to maintain the highest level of conservation and environmental protection of the eco-system, safeguarding and enriching areas of natural and indigenous forest to protect flora and fauna and promote bio-diversity.
As food prices are closely linked to inflationary trends, owners of agricultural assets and those exposed to farming businesses possess a hedge against inflation. This is one key diversification benefit of the asset class. Agriculture has been shown to have low correlation with many other asset classes such as equities and corporate debt, which dominate the investment market. This means that including agricultural in a portfolio can provide significant diversification benefits, resulting in an increase in portfolio return or reducing overall portfolio risk. Population driven food demand remains the core base of demand for agricultural commodities. The demand for food is relatively inelastic to income, making demand for agricultural commodities less subject to an economic slowdown.
Food security is traditionally defined as food availability and one’s access to it. Over the years however the definition of food security has developed into more descriptive terms as its importance has risen. The Food & Agriculture Organization of the United Nations (FAO), the United States Department of Agriculture (USDA) and dozens of others today have their own interpretation of food security. Furthermore, low levels of food security place significant stress on government expenditures. It forces governments to invest substantial resources in the short-term through social safety net programs and conditional cash transfers. It also increases their reliance on food imports which is detrimental to long term food self-sufficiency. The FAO has reported that high rates of malnutrition can lead to a GDP loss of as much as 4-5%.
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.
Water scarcity is another impending crisis. 28% of agriculture lies in water stressed regions. It takes roughly 1,500 litres of water to produce a kilogram of wheat, and about 16,000 litres to produce a kilogram of beef. In 2050, the world will need twice as much water. As the world population soars, arable land per person proportionally shrinks. The stresses on food production and food prices will inevitably keep rising. Arable land loss can be combated by improving productivity per acre and taking measures against climate change and erratic weather conditions. 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.
Ecosystems will change—some species will move farther north or become more successful; others won’t be able to move and could become extinct. Wildlife research scientist Martyn Obbard has found that since the mid-1980s, with less ice on which to live and fish for food, polar bears have gotten considerably skinnier. Polar bear biologist Ian Stirling has found a similar pattern in Hudson Bay. He fears that if sea ice disappears, the polar bears will as well. Glaciers are melting, sea levels are rising, cloud forests are drying, and wildlife is scrambling to keep pace. It’s becoming clear that humans have caused most of the past century’s warming by releasing heat-trapping gases as we power our modern lives. Called greenhouse gases, their levels are higher now than in the last 650,000 years. Plantations International has noticed that levels of greenhouse gases (GHGs) have gone up and down over the Earth’s history, but they have been fairly constant for the past few thousand years. Global average temperatures have stayed fairly constant over that time as well, until recently. Through the burning of fossil fuels and other GHG emissions, humans are enhancing the greenhouse effect and warming Earth.
