Britain must produce more food

The Environmental Secretary Hilary Benn said that "food security is as important to this country's future wellbeing, and the world's, as energy security. We need to produce more food."

According to 'Food 2030: How We Get There', a new strategy published by the UK government, the Department for Environment, Food and Rural Affairs will be working towards a sustainable food supply, by making temporarily vacant land available for people to grow their own food, as well as investing in scientific research and providing assistance to farmers in developing countries.

Global farmland loss

Global farmland is disappearing at an alarming rate. In the US alone, two acres of agricultural land is lost every minute to development, according to the American Farmland Trust.

Meanwhile, more land in Africa is being lost due to climate change. A study published in the June 2009 issue of Environmental Science and Policy claimed that by 2050, up to 500,000-1,000,000 square kilometres of marginal African farmland could no longer be able to support even a subsistence level of food cropsdue to hotter conditions and shifting rainfall patterns in the continent.

Food crisis

With another 2-3 billion people in 40 years, coupled with climate change, the world is facing a potential food crisis.

Food prices reached a record high level between 2007 and 2008, and as the New Year starts, analysts are expecting another food price spike soon.

Savvy investors are taking this opportunity investing in agricultural land to reap the rewards and to help feed the world. One of the hottest destinations is Ukraine, the "bread basket" of Europe.

70% of Ukraine's land is arable land. Moreover, it has 40% of all rich black earth soil in the world.

By leasing farmland in Ukraine, investors can enjoy cash flow generation from farming operations, as well as the value appreciation on agricultural land.

Current wheat yield in the country is about 3.2 metric tonnes per hectare, and it has room to grow up to 8 metric tonnes per hectare and to produce a lot more food for the world.

Find out more by downloading our Ukrainian Agricultural Investment report by clicking here.