GLOBAL 鈥� Institutions considering farmland investment should examine the opportunities presented by harvesting seaweed and sandalwood, according to a Thai company involved in contract farming.
Arvind Narula told Nina R枚hrbein in the that the harvesting of edible seaweed carrageen would go a long way towards meeting unmet demand.
The chief executive of organic rice company Urmatt also highlighted sandalwood cultivation as a way of diversifying the returns from farmland, as it is used in the production of perfume.
While Narula conceded that accusations of land grabbing were 鈥渙f course鈥� an issue, he said there were approaches that benefitted both investor and farmer 鈥� as long as everyone involved understood supply and demand.
鈥淥ut-grower projects that are well thought-out and well manned, with the correct expertise and technical know-how in crops for which demand exceeds supply, can be very rewarding for all players,鈥� he said.
厂飞别诲别苍鈥檚 , which, in 2011, invested $250m (鈧�177m) in a with US institution , stressed the importance of sustainability for all farmland holdings.
Christina Olivecrona, sustainability analyst at the SEK248bn (鈧�28.3bn) buffer fund, said its approach was well suited to a partnership with TIAA-CREF.
鈥淭o make sure our investments are sustainable, we have to undertake in-depth due diligence to ensure the companies we select share our values,鈥� she said.
The fund in 2012 and said last year that it would grow its agricultural and timberland holdings .
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