A few tips for first time agricultural investors

Investors with experience in the agricultural industry will be the first ones to testify to its value as an investment. With promising returns, agriculture is an important asset in any investment portfolio.

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Here are a number of investment tips shared by veterans in the industry. 

Look into grain complex. 

Grain complex is a stable area in the agriculture industry. It is also lucrative for most of the year. The market for corn, soybeans, oats, and wheats around the world is large and hungry, consuming grain on a regular basis. 

Look into coffee and sugar. 

Coffee is in the top five commodities in the world, while sugar is a mammoth product sold and used almost everywhere. They are both stable and lucrative, quite like grain. The only difference is that in many places of the world, coffee and sugar are seen as luxuries. 

Learn how to take care of livestock. 

There are more non-vegans than there are vegans in the world. That’s a fact. Billions of people consume chicken, pork, and beef. Even livestock products such as eggs and milk are always in high demand. Knowing how to take care of livestock can go a long way when investing in a farm. 

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Jon McKee Queen is an expert manager, trader, and investor currently working with private equity firm Amatex Capital, which practices activist investment. Learn more about him and his work by checking out this blog.

Putting The Premium On Value-Added Products

It may sound like a paradox as far as traditional models go, but emphasizing the importance of value-added products is key in modern businesses. In this internet age of quick and easy access to buyers, maintaining customer engagement, support, and satisfaction is a tall order.

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It all begins with what the business can add to the purchasing experience and transaction. Value-added products go a long way in image-building and branding. Added touches, improved features, or a discounted price generate loyal customers who will overlook the basic offerings of the competition. Value-added means an improved customer perception of the product’s value.

It is crucial in the digital age to gain competitive advantage. Many businesses provide services like one-year support for repairs or product replacements, which often spell the difference for successful transactions in a highly discerning modern market.

Nowadays, it’s not so much what the product is, but what the product can provide to the customer. This is the important shift: understanding what buyers value, from the processing methods and environment-friendly packaging to the fast delivery of a company’s products.

Think of perceived value as paying more for an Adidas or Nike pair of shoes over other sneaker brands. Or opting for a more expensive BMW car because of the quality associated with the company’s vehicles. Pricing is determined based on what customers are perceived to value and are willing to pay for. All in all, value added is the refinement of a product with the customer fully in mind.

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Jon Queen is currently a part of Amatex Capital, a Ukraine-focused private equity firm that places emphasis on the sectors responsible for gas and oil production, agriculture, production of value-added products, retail, and commercial real estate. Jon has worked with two leading Kyiv-based investment banks as Managing Director and Head of International Sales. More on Jon and his work here.

Advantages Of Investing In Commercial Real Estate

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Given the volatility of the current economy, it is wise for investors to put their money in different asset classes. One such investment vehicle that offers myriad benefits is commercial real estate. Below are some of those advantages:

Income potential: Investors and developers have found their capital grow at high and quick rates when they invest in commercial real estate due to high demand for this kind of properties. Furthermore, it provides a steady source of income because of the long lease terms, which typically lasts from five to 10 years.

Ease of management: Compared with residential real estate, commercial types are less stressful to manage. Not only is there a fewer number of tenants to deal with, but commercial property tenants are also known to be more cooperative.

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Appreciation of assets: In any investment, the goal is to maximize returns over time. Most real estate assets appreciate; however, commercial properties have shown to be capable of doing so at higher rates than not just other real estate types, but also other investment vehicles. Proper management and cost-effective improvements can further drive up the value of commercial real estate.

Protection against inflation: Inflation is a common occurrence. But rising prices consequently increases rental or leasing fees. Thus, commercial real estate can serve as a hedge against inflation.

Jon Queen’s expertise involves investment banking, trading, project development, commodities, and corporate finance. He currently works with Amatex Capital, a private equity firm which places emphasis in various asset classes that include commercial real estate. Visit this website to read more about Mr. Queen and his work.

Understanding Value-Added Products

Some agricultural produce are sold as is, without having to undergo further processes, whether natural or otherwise. Examples of these are fruits and vegetables that are up for sale after they have been harvested. By themselves, they already have value. But if they are changed or transformed from their original state, they become value-added products.

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There are many reasons for value-added products, and one of them, and probably the most essential, is that there is a demand for them. 

For example, consumers need flour. Thus, producers refine wheat to create them. Fruits that are made into jams are also considered value-added products. Grains that are modified into biomass for energy purposes are also an example. When biotechnology is introduced to the processes of preparing agricultural goods, the finished product is considered a value-added one. 

Even the consumers’ increasing preference for healthier alternatives has led to many organic farming business models, whose products have also been defined by the U.S. Department of Agriculture as value-added. Although, this is still an on-going debate as some point out that even though organic products have more value, they are technically not “added,” and they are inherent to the processes of organic farming. 

There are various approaches to adding value to farm products, but they generally fall into two categories, namely, innovation, which emphasizes the improvement of existing processes, products, and services, and coordination, which focuses on the arrangement between the entities that create the farm products and that market them.

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Jon Queen is at present a part of Amatex Capital, a private equity company from Ukraine that pursues investment opportunities in various fields, including agriculture, production of value-added products, and more. Learn more about Mr. Queen by visiting this page.

Is It Worth Investing In Sustainable Agriculture?

Amatex Capital is contemplating strategic agreements with leading international groups in regard to Ukrainian oil and gas, commercial real estate, agriculture and energy opportunities; it has commenced due diligence on several resource plays and M&A opportunities. The firm’s management is then no stranger to agricultural investments or real estate, either. And with the company’s information gathering efficiency, it was only a matter of time before they ventured into sustainable agriculture.

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So the question is – just how financially viable can sustainable agriculture be?

Sustainable agriculture isn’t a new concept. In fact, the very concept of sustainability in structures and businesses has been used as cornerstones in many of the world’s greatest societies. Today, many entrepreneurs and entities have gravitated towards sustainable businesses, including real estate and agriculture, because the world has become more concerned about the environment.

In agriculture, sustainability doesn’t change the fundamentals of farming. A farm will still have its basic responsibilities to its workers and the community. Farm management, however, will be different.

A key aspect of sustainability is the minimization of pollution. To achieve this, farm soil has to be properly tended, and water should only be used when needed. The development of crop rotation, a sustainable ecosystem, a biodiverse farm, and agroforestry is encouraged in sustainable agriculture.

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Jon Queen is currently a part of Amatex Capital, a private equity firm that places emphasis on the sectors responsible for gas and oil production, agriculture, production of value-added products, retail, and commercial real estate. The company is exploring a strategic partnership with North American oil and gas companies to develop opportunities in Ukraine, offering critical value enhancement to the business platform. This initiative enjoins several of Ukraine’s experts in the oil and gas sector who have worked in technical field capacities for Shell, Chevron, Exxon, and many other international and local oil and gas specialists who have done research and are presently developing opportunities in Ukraine. Learn more about Jon Queen and Amatex Capital here.