Investors are no longer pumping money into the agriculture sector. Investments in food and agriculture businesses have hit a five-year low this year, a study shows.
So far in 2016, total investment in the food and agriculture sectors has been $250 million, a 78% decline from 2015 (full year), claimed the study.
There have so far been only 62 deals in the sector this year, as compared with 153 in 2015. Total fund inflow touched a five-year low after the sector received $523 million of investments in 2014, $406 million in 2013 and $435 million in 2012.
Agriculture, farming and processing companies attracted the maximum investments in 2016 with six deals amounting to $79 million. However, this is a decline of about 58% from $191 million in 2015.
Food technology and online groceries received only $67 million of investment in 2016, a sharp decline from $504 million in 2015. Between 2014 and 2015, investments in food technology and online groceries jumped 358%.
There were nine deals totalling $42 million in the packaged food segment in 2016 so far, a 68% fall from the previous year.
“Dairy and poultry has been the only segment to witness a growth of 120%, with investments amounting to $33 million in 2016 spread across two deals,” the study added.