Agcapita Partners LP, an investment manager that specializes in agricultural land investment provides its update on agriculture and the economy.
Agriculture summary:
– China has only 8 percent of the world’s fresh water to meet the needs of 22 percent of the world’s people.
– In India, urban water demand is expected to double—and industrial demand to triple—by 2025.
– To support the diets of the additional 1.7 billion people expected to join the human population by 2030 at today’s average dietary water consumption would require 2,040 cubic kilometers of water per year—as much as the annual flow of 24 Nile Rivers.
– According to the International Water Management Institute the key agriculture regions of the south-western US, Pakistan, western Australia, southern Africa and southern India are all already water constrained begging the question how they will increase production from this point forward.
Economics summary. It’s all about the following:
- Low savings rates
- High debt
- Inflation
- Demographics
- Energy
