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Willingness to invest worldwide

Chart of the month (May/2018)

DLG-Agrifuture Insights is the new DLG-knowledge brand and platform for international trend analysis in farming. It examines the business environment in agriculture and agribusiness through a global panel of 1,650 leading farmers in 11 countries. Every month, Agrifuture Insights publishes a "Chart of the Month" from the extensive range of development trends in international agricultural markets.

When asked about planned investments over the next 12 months, especially dairy farmers in Germany and crop producers in Russia answered positive. Since Russian dairy farmers also want to invest to a greater extent, the propensity to invest in Russia as a whole is comparatively high – even higher than in the domestic market.

In detail, dairy farmers in Germany are planning to make up for deferred investments, while crop producers in Russia are benefiting from the increase in livestock production and from the rapidly growing grain exports. One of the world's most important agricultural producers is Brazil. In particular, poultry farmers are planning investments, as demand for poultry meat is constantly increasing – both in export markets and in the domestic market.

In South Africa, the willingness to invest is comparatively restrained. Uncertainty is provided by an initiative for land reform, in which the land expropriation of farmers is discussed.

A look at the willingness of farmers surveyed in DLG-Agrifuture Insights shows that, despite the difficult investment conditions in emerging markets, such as difficult access to debt, high capital costs, farmers are modernizing their businesses. Farm managers in Brazil are increasing their productivity in order to secure their competitiveness in the international market.