Agribusiness, food & water

The growth in the world population towards nine billion in 2050, and an increasing middle-class population in developing countries, means an inexorable rise in the number of mouths to feed. Driven by increased market demand, large internationally-active food companies and traders are ever more focused on controlling their entire supply chain, resulting in increased investments in their suppliers.

On the minus side, the agriculture industry is a major emitter of carbon dioxide and uses 75% of the world's ever scarcer water supply. On the plus side, it is a fast-growing industry that has the potential to create a great deal of employment.

All these factors make agribusiness, food & water a logical sector for FMO to focus on as a bank 'additional' to commercial financiers. We have always done food & agribusiness transactions, but in 2011 we decided to make it our fourth focus sector. This allows us to build our knowledge and expertise in the sector, so that we can add more value to our clients.

Staffing the sector team began in 2011 and will be completed in 2012. The dedicated team is initially sourcing new deals through partners, and managing the existing agribusiness portfolio.