Aquaculture (fish farming), the fastest growing segment within the global agribusiness category, is steadily growing at a compound annual growth rate of 9%. In the 1970s, aquaculture represented only 6% of total seafood consumption. Today, it represents 40% and is expected to rise to 50% by 2024, representing a market size of $100 billion. A recent article in Time Magazine reported, “Part of the reason for aquaculture’s growth is the increase in global demand for seafood coupled with a flat or declining supply from wild harvesting.”
Through our aquaculture business we are planning to acquire additional farmland, which provides current income as well as the other benefits of hard assets. There is a growing consensus that farmland will benefit from the increase in demand for grain, environmental pressures for alternative energy, and the impact of globalization. We believe farmland is an attractive long-term investment that offers current income, capital appreciation, an inflation hedge and favorable diversification that is negatively correlated with traditional asset classes. History demonstrates that over the years, investors with an allocation in agriculture have benefited from less volatility and more positive returns to offset losses from the other asset classes.