Agribusiness FAQ

Agribusiness is “the sum total of all operations involved in the manufacture and distribution of agricultural and forestry supplies; on-farm production operations; and the storage, processing and distribution of agricultural/forestry products and items made from them”.

(A Concept of Agribusiness, John H. Davis, Ray A. Goldberg, Harvard University, 1957)

One of the three capitals of the EU (with Brussels and Strasbourg), located in the heart of the EU, main EU financial center, main worlwide stock exchange to list green bonds, second largest fund industry center in the world, home to large insurances, life insurances, Family Offices, Private Banks, Luxembourg is also a thriving place for entrepreneurs, research, innovation and start ups.

Luxembourg holds also many EU institutions such as the European Court of Justice, a branch of the European parliament and many important entities such as the EIB (European Investment Bank).

It is an agribusiness activity that respects Nature, generations to come, local culture, biodiversity and that is sustainable in the long run.

ESG is a set of rules of good practices that respectful companies follow in term of Environment, Society and Governance.

Agribusiness is a class of asset related to primary production and the technologies used for their production and transformation.

Sustainable finance refers to the process of taking environmental, social and governance (ESG) considerations into account when making investment decisions in the financial sector, leading to more long-term investments in sustainable economic activities and projects. Environmental considerations might include climate change mitigation and adaptation, as well as the environment more broadly, for instance the preservation of biodiversity, pollution prevention and the circular economy. Social considerations could refer to issues of inequality, inclusiveness, labour relations, investment in people and their skills and communities, as well as human rights issues. The governance of public and private institutions – including management structures, employee relations and executive remuneration – plays a fundamental role in ensuring the inclusion of social and environmental considerations in the decision-making process. (From the EU Commission website)

Some institutionnal investors, especially those helping their own countries to modernize  such as sovereign funds or those which want a diversification have frequently around 7% of their portfolio in agribusiness.

The EU, together with other global giants such as USA, Brazil, China, South Africa has a strong research and innovation in agribusiness technologies, to make sure the food production is safe, sufficient and harmless to the Global Environment and to the Climate.

As  30 to 50% more food production are needed by 2050 to face global population growth, sustainable development goals and increase in standard of living, this class of asset is a priority now for many investors, inventors and entrepreneurs.