How almonds pay your pension
Healthy eating habits are on the rise, and it's good news for your retirement. In 2014, we added Aroona Farms, an Australian almond grower, to our Natural Resources portfolio.
Our investment in Aroona is one of six agricultural investments we've made (check out How mussels pay your pension to learn about our aquaculture investment).
Going nuts for almonds
If gluten or lactose rumbles your digestive system, you're not alone. People are increasingly seeking out gluten-free or lactose-free alternatives, and almond flour or almond milk are popular alternatives to traditional flours or dairy products.
Dietary restrictions or not, almonds enjoy a rep as a healthy, easy, protein-rich snack. Global consumption of the tree nut has been increasing over the past 10 years, with room for growth in China and India, where per capita consumption remains low.
In 2018, the global almond market was about $7.6 billion,* and forecast to keep growing. Demand for gluten-free and grain-free alternatives, including an increase in the inclusion of natural ingredients in cosmetic products are helping to drive the boom.
*Source: market.us
Commodities help protect against inflation sneak attacks
When inflation spikes, equities and bonds typically perform poorly. On the other hand, the value of commodity investments, like food, tends to rise in line with inflation.
Having Aroona in our portfolio helps maintain balance during unexpected inflationary periods.
Greater water efficiency = greater yields
Agriculture assets, like Aroona, can be vulnerable to climate trends and water scarcity. We worked with Aroona to improve their water management practices and consider the long-term outlook for water availability in the area. Together we implemented advanced monitoring technology that involves plant sensors and algorithms to detect plant stress and water needs.
We worked with Aroona to develop more efficient water use, leading to stronger yields and lowered greenhouse gas emissions.
Through investments like Aroona Farms, we aim to supply the global demand for safe and nutritious food while minimizing strain on the environment.
