Rising global food demand creates the need for increasing investment in primary production.
Proterra’s Agriculture investment strategy pursues investment opportunities based on our view that rising food demand calls for an increase in farmland as well as increased investment in existing farmland. We view chronic underinvestment and lagging yield improvements as having inhibited the response to increasing global demand and we believe opportunities exist to acquire land and apply professional management and proper investment to maximize its productivity.
In order to determine attractive relative value regions, Proterra evaluates sovereign risk; business and regulatory environment; land values; optimization of yields; local cost of production; local cash markets for crops produced; environmental impact; weather risks; and execution risks. The Agriculture investment strategy utilizes an own & operate model, whereby we seek out and validate capable and reputable operators who share our vision of the need for larger-scale farming to meet the world’s food needs.
- Land conversion and development.
- Land management/operations.
- Related infrastructure (storage, ports, barges, etc.).
- Locate attractive relative value opportunities globally.
- Partner with capable, reputable, local operators and provide proper capitalization to increase productivity.
- Execute acquisition plan with consistent market analysis and pricing discipline.
- Use of best in class agricultural and equipment technology to seek to maximize yields and minimize environmental impact.
- Expect to develop local operations with scale, proper governance, and sustainability through profitability.