Massively Underpriced Post-Soviet Agriculture Market Promises Huge Returns

“AG Chat” Explores Eastern Europe's Enormous Investment Potential

For nearly 20 years, George Rohr and his partners have been gradually, meticulously nudging a sleeping giant—and cultivating what may be the most fertile agriculture investment opportunity on the planet.

Shortly after the fall of the Soviet Union, NCH Capital (Rohr is co-founder and president) began investing in Russia, Ukraine and post-Soviet Eastern Europe, whose black-earth belt ranks among the world’s greatest—and least optimized—agricultural resources.

“There is a massive shortage of capital that prevails across asset classes, across the geography and across eleven time zones,” said Rohr, who noted NCH has concentrated on bringing “some of the most productive farmland in the world back into productive capacity.”

NCH is today one of the largest Western investors of institutional capital in farmland and agribusiness assets in the region. Rohr says the quality of these assets wasn't the only attraction; they’re also ridiculously undervalued.

Before the Bolsheviks, this land constituted the Old World’s breadbasket. And after being mismanaged and relatively neglected for the better part of the 20th Century under the Soviets, Rohr says the new, progressive governments under whose stewardship this agricultural treasure fell opened the door to Western investors.

But Western investors have been slow to throw in, in cases preferring to cast lots with other emerging markets like Brazil and China—in no small measure due to innacuracies perpetuated by Western media, according to Rohr.

Consequently, NCH has been able—by direct purchase or lease—to acquire, aggregate and operationalize roughly 700,000 hectares of prime farmland in Russia, Ukraine and other Eastern European countries at a fraction of their actual value.

In this candid “Ag Chat” interview, George Rohr will:

• Outline NCH's approach to agriculture investment in Russia, Ukraine and Eastern Europe

• Provide an overview of infrastructure and transport issues

• Address misconceptions with regard to property rights, transparency, governance, etc. facing prospective investors, and much more...

“You are going to see increasing diversification in [Russia and Ukraine] away from natural gas, oil and other harder natural resources as a source of foreign revenue toward agricultural commodities. This sector really is the sleeping giant for both countries,” said Rohr.

“There are great returns to be made from riding the elevator from the fourth subbasement to the ground floor,” he added, noting the market is maturing, and opportunities like this don't come often or last forever.

Listen to Part 1.

Download a transcript of Part 1.

Listen to Part 2.

Download a transcript of Part 2.

Editor’s note: “Ag Chat” is produced by the AG 2.0 Global Investments Conference scheduled November 7-8, 2011 in Toronto, Canada.

For more information or to register, please visit www.ibclifesciences.com/globalaginvesting.

If you would like to hear more from George Rohr, he will also be featured at the 20th Annual Public Fund Boards Forum December 11-13 in New Orleans. Click here for details.

ABOUT AG CHAT
Ag Chat is an executive interview series featuring the business experts, investors and entrepreneurs at the forefront of sustainable agriculture. Each episode explores the trends, technologies and drivers shaping the world of sustainable agriculture today.

ABOUT THE AUTHOR/INTERVIEWER
Marc Dresner works closely with IBC Life Sciences as a communication lead. He is the former executive editor of Research Business Report, a confidential newsletter for the marketing research industry. He may be reached at mdresner@iirusa.com. Follow him @mdrezz.

USDA estimates 8,400 US Jobs for Every $1 billion raised from Agricultural Exports

With the economic hardships American’s are now facing, there are only so many financial solutions we can create. However, among the ever growing list of problems, we also have our ever growing population. As of this July, the estimated population for our planet has reached 7 billion. With that, comes a drastic growth in resources obtained. Consuming and maintaining these resources efficiently will be a challenge. Both farmers and consumers must develop a way to use these resources effectively in order to maintain a constant supply.

Researchers recently teamed up with Nourishing the Planet and traveled to countries all across Africa. Their results prove to be successful. “Nourishing the Planet's research in Africa has unveiled innovative and cost-effective approaches to agriculture where farmers are treating land as a resource rather than solely as a means for food production. Many of these solutions are scalable and can be adapted to farming systems around the world.”

Many people also overlook the fact that the demand for agriculture produces a lot of jobs. Agriculture Secretary Tom Vilsak estimates that the demand for exports will be historical in 2011. “USDA estimates show 8,400 jobs are created in the United States for every $1 billion raised through agricultural exports.” Farmer’s markets are an easy way to promote local products and also encourage healthier lifestyles. “A study of the Springfield Farmers’ Market by the Lane Coalition for Healthy Active Youth in 2010 found that during the three years of market operation, customers reported an increase in the consumption of fruits and vegetables due to enhanced accessibility.”

I think as we continue to look for answers to help consolidate and solve our national debt, we will start to discover all of the opportunities that our Agriculture Industry has to offer.

For more information or to register, please visit www.ibclifesciences.com/globalaginvesting

AG Economics 101: Tom Eisenhauer of Bonnefield Financial

Tom Eisenhauer of Bonnefield Financial, a speaker at Ag 2.0 Global Investments 2011, provides an overview on how agricultural economics is different than other industries and the implications for investors.





Valerie M. Russo is a Senior Social Media Strategist on the Ag 2.0 Global Investments and Water 2.0 Investment Summit team, with a technology, anthropology, marketing and publishing business acumen. She is a published poet and also maintains a literary blog. She may be reached at vrusso@iirusa.com. Follow her @Literanista.