While private equity firms are making strategic moves into the agricultural sector in Europe, Beka Asset Management stands for being pioneer in launching the first private equity fund in agribusiness in Spain. It adhered to the Article 9 of the European Union´s Sustainable Finance Disclosure Regulation (SFDR) with the Beka & Bolschare Iberian Agribusiness Fund, a sustainable investment product in accordance with these standards. This innovative fund, forged through a partnership between Spanish fund manager Beka AM and Portuguese industrial partner Bolschare, is poised to revolutionize the industry.
Focusing on super-intensive olive and almond farming, the fund aims to modernize the fields in Iberia, most of which are still cultivated by small producers who harvest manually, most of whom don´t have generational succession.
"There is more and more interest in investing in this sector ... A well-managed farm is a good business," said Fernando de la Vega, Managing Director of Beka Finance, who expects olive oil prices to remain above the fund's initial forecasts.
In Spain, the price of extra virgin olive oil has doubled since the beginning of the year, reaching 8,20 euros ($8,74) per kilo in September, as production has halved, mainly due to the drought. The managers of the Beka & Bolschare Iberian Agribusiness Fund based their initial forecasts on a historical average price for olive oil in Spain of €2,70 per kilo. The current scenario is therefore a significant leap from the initial 11% yield returns forecast, promising not only better profits for its investors, but also sustainable growth.
A new way of cultivating the land
Beka & Bolschare Iberian Agribusiness has invested in 1,200 hectares of olive groves in Portugal, where it has secured irrigation from the artificial Alqueva reservoir and 650 hectares of almond groves in Talavera de la Reina, Spain, with direct access to water from the Tagus River. This way, the fund reduces one of the main risks in agricultural plantations: drought. This move underlines its commitment to modernizing olive and almond cultivation in the region, contributing to climate change mitigation, fixing population to the rural world, optimizing the use of water and applying the latest technologies to agricultural development.
Beka Asset Management is committed to innovation and strategic investment with a cutting-edge approach to set a new era in agribusiness, offering investors a unique opportunity with substantial returns.
Read the full article by Reuters