The food crisis in Africa in 2008, mainly, was caused due to the shortage of staple food grains such as wheat and rice. Since 2008, the price of food grains has continued to rise and it is having a devastating impact on people of countries suffering from food shortage.
The only way to resolve the problem of food grain crisis is farmland investments where investors can benefit from the rising demand for food grains. The investment in agricultural land offered by Capital Alternatives provides access to prime rice farming land in Africa and the returns are gained through rice yields and accreditation of agricultural land. The farmlands of Western Africa are highly cultivable and it generates abundant crop, which can fulfil the local demand for food grains. Capital Alternatives offer alternative investments in rice palm tree plantation in the region, which is another lucrative deal providing opportunities to earn long term returns.
The investment in agricultural land is not only helpful in reducing food crisis but it also provides an ethical method to earn. The farmland investment project of Capital Alternatives provides employment opportunities to local farmers and a share of profit is invested towards the development of the region. This is a social investment, which is fully managed and insured to offer secure returns annually to investors backed by profitable exit option. In the recent years, farmers are benefiting from the new developments as the agricultural investments provides a method to earn through harvests and to fulfil the increasing demand of food of the growing global middle class.
The increase in food prices has severe impact on food intake of people and the survey conducted in seven Latin America countries found the rise in food price reduced the total calorie intake of people by at least 8%. If there is no rise in income and the food prices increase by 50% the intake of nutrition will reduce by 30%. The price of food grains such as wheat rose by 115%, the price of rice increased by 102% and the cost of maize increased by 204% as per the projects of FAO in the last three years. The estimates made by the UN Food and Agriculture Organization found around forty-four million people have been pushed into hunger and poverty due to the rise in price between June 2010 and February 2011.
The reason for high food prices has been many. Climate change is one factor which has a direct relationship with rising food prices. The increasing pollution has an impact on rainfall patterns and it results in reduced production of food grains.
Investment in agricultural land in certain unregulated regions promotes improved food grain production. The process links agricultural production with market demand and the produce can be sold through the supply chain mechanism, which provides benefits to the local farmers. The increased demand for food grains also increases the value of agricultural land. The process has diverted investors from the traditional method of investments to alternative investments involving agricultural and forest land investments and many investors are seeking opportunities in farmland investments.
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