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I'm a Malaysian who in the past managed two agriculture private equity funds. I've engaged with dozens of local farmers of over the years. The problem with pal
by Mengkudulangsat 7y ago
I'm a Malaysian who in the past managed two agriculture private equity funds. I've engaged with dozens of local farmers of over the years.
The problem with palm oil monoculture is that it is so easy that it makes its practitioners complacent. The value chains are established, the prices are commoditized (there is a local futures market) and there is ample government backing for international lobbying. Unfortunately, this means that the value-add (and margins) at each step of the value chain is now really thin. Unless you are vertically integrated and operate at enormous scale, you won't make much.
Short, high-value, local-farm-to-plate, gourmet-ingredient agriculture is what I dream of, sort of like what the Japanese have. It doesn't always have to devolve into mega-agribusiness.