Pricing Agribusiness Risk

Our expertise and experience in pricing risk in agribusiness enterprises is central to our ability to advise on capital markets funding strategies.

The Tropical Tree Crop Sector of Sub-Saharan Africa

Sub-Saharan Africa has suitable conditions for the cultivation of the most important tropical ‘tree crops’ including Oil Palm, Natural Rubber, Coconuts, Cocoa and Bananas. Yet, with the exception of cocoa production, African production of these big tropical ‘tree crops’ is small relative to the output of the Asian producer nations: Indonesia & Malaysia in the case of palm oil, Thailand and Indonesia in respect of natural rubber, Indonesia and Philippines in respect of coconuts, and India, China and the Philippines in respect of banana production.

In all these segments, a distinguishing feature of African production is the bias towards production by the informal, smallholder sector. Within the smaller agro-industrial sector, the influence of European and Asian plantation companies is fundamental to the current structure of the industry, and it seems likely that the future shape of the sector will also be led by these companies. However, for investors, there are limited direct investment opportunities in businesses able to benefit from the growth in demand for African tropical ‘tree crops’. Those companies which have significant Africa based business operations, and which also have a stock market listing, are detailed herein.

Please click to download: Tropical Tree Crop Sector of Sub Saharan Africa