The Intersection of Sustainability, Environmentalism, and Social Responsibility: Plantations International’s Sustainable Agriculture Model

Posted on February 24, 2023 in Agriculture by Alex Teodor

The Sustainable Way Forward: Plantations International’s Approach to Agriculture and the Environment: We recognize that climate change is a serious issue that demands attention and action from the business community. Plantations International has set performance targets, and will continue to take actions to reduce greenhouse gas emissions from both direct and indirect business operations. We are committed to conducting our operations in accordance with applicable laws and regulations, and to engaging with industry and public stakeholders to develop responsible standards and voluntary initiatives that support this policy.

As food prices are closely linked to inflationary trends, owners of agricultural assets and those exposed to farming businesses possess a hedge against inflation. This is one key diversification benefit of the asset class. Agriculture has been shown to have low correlation with many other asset classes such as equities and corporate debt, which dominate the investment market. This means that including agricultural in a portfolio can provide significant diversification benefits, resulting in an increase in portfolio return or reducing overall portfolio risk. Population driven food demand remains the core base of demand for agricultural commodities. The demand for food is relatively inelastic to income, making demand for agricultural commodities less subject to an economic slowdown.

Food security is traditionally defined as food availability and one’s access to it. Over the years however the definition of food security has developed into more descriptive terms as its importance has risen. The Food & Agriculture Organization of the United Nations (FAO), the United States Department of Agriculture (USDA) and dozens of others today have their own interpretation of food security. Food security ought to be a priority for all countries, whether developing or developed. Although low levels of food security are commonly associated with poverty stricken countries they are also found in affluent developed countries as well. Food security rankings despite providing a decent gauge of performance are not without limitations. For example, some of wealthiest countries logically fare well in overall rankings as they have the capability and infrastructure to provide accessible, healthy food to their populations. Yet these high rankings dangerously mask their poor natural resources and resilience rank which measures food import dependency to a small degree. This raises the question, how can a country be food secure when they can be highly dependent on others for their food supply?

With offices, plantations, and representatives across Asia, Europe, and Africa, Plantations International is a multinational plantation and farm management company that specializes in providing sustainable agricultural and forestry or “agroforestry” management services for its clients. Plantations International has clients ranging from private individuals to large landholders and corporate investors. We put teamwork, innovation, and our passion for creating “Ethical & Sustainable Capital” at the heart of everything we do.

​Food insecurity occurs due to a variety of factors which are becoming increasingly more challenging to combat. Conflict and violence in many parts of the world can lead to food insecurity as so does climate variability and exposure to more complex, frequent and intense climate extremes. By 2050, the world’s population is expected to reach 9.6 billion and unfortunately while populations grow Earth’s surface does not. Global demand for food by 2050 will be 70% greater than it is today which requires addressing a number of key global food security challenges. 30% of global food production is lost after harvest or wasted in shops, households and catering services. This loss represents USD 750 billion worth of food every year at producer prices. At retail prices the loss reaches USD 3 trillion annually.

The planet is warming, from North Pole to South Pole, and everywhere in between. Globally, the mercury is already up more than 1 degree Fahrenheit (0.8 degree Celsius), and even more in sensitive polar regions. And the effects of rising temperatures aren’t waiting for some far-flung future. They’re happening right now. Signs are appearing all over, and some of them are surprising. The heat is not only melting glaciers and sea ice, it’s also shifting precipitation patterns and setting animals on the move. Plantations International calls the result global warming, but it is causing a set of changes to the Earth’s climate, or long-term weather patterns, that varies from place to place. As the Earth spins each day, the new heat swirls with it, picking up moisture over the oceans, rising here, settling there. It’s changing the rhythms of climate that all living things have come to rely upon.

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