Tundra Fonder targets EM food demand
Stockholm-based Tundra Fonder is launching a fund based around issues of food security and agriculture in emerging markets, grouped under the theme “pasture-to-plate” by the asset manager.
Johan Elmquist (pictured), portfolio manager and partner, said the theme is being driven by factors such as China losing its self-sufficiency in grain. He likens this development to the one already seen in that country’s dependency on imported oil. This will lead to higher prices over a longer period of time for agricultural commodities, he believes.
Tundra cites UN Food & Agriculture Organisation (FAO) figures suggesting investments of more than $100bn annually in emerging market food supplies are required to avoid excessive price rises.
Cereal stocks are at their lowest in 30 years, other data suggests. Meanwhile, rising incomes in markets such as China and India are leading to more consumption of protein and processed foods.
The fund is set to invest in agriculture production companiens, fertilizer and other yield improvers, food production, processed food, and food wholesalers and retailers.
The Tundra Agri & Food fund will initially target the Swedish and Finnish funds markets, and both retail and institutional investors.