Food and agribusiness survey
Respondents are evenly divided over the subject of investment or potential investment in transport or other infrastructure; 48 per cent are considering investing in it (compared to 42 per cent in 2012).
Our survey suggests that the market is feeling more positive about further investment. Reluctance to invest appears to stem from the fact that the riskiest markets are where infrastructure and transport investment is most needed. Respondents are wary of investing in these regions, because the margins are thin and the market is susceptible to price volatility. A number of respondents also believe that infrastructure is the responsibility of the state and not private investors. This attitude contrasts starkly with higher margin industries such as the mining sector, which has experienced much more investment in infrastructure from the private sector.
Over half of respondents who are investing in transport and infrastructure identify the acquisition of warehouse facilities as the most common strategy for infrastructure investment over the next 12 months. A sizeable number of these respondents also see investing in the development of a processing plant and in port development projects as key to their strategies.
Investment in road/motorway developments and rail development projects are also on the agenda for some respondents, though this is identified less often as forming part of the respondent's strategic plan.
Many respondents (59 per cent) expect to increase their investments in agribusiness in the next 12 months. This contrasts with our 2012 survey when 67 per cent of respondents indicated that they would increase their investment programmes. Only a very small proportion of our latest respondents expect a reduction in investment in the next year.
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