Livestock facilities lead global farmers’ investment intentions

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The Summer 2018 Agrifuture Insight chart shows the investment focus of many of the worlds farmers is in livestock facilities Russia is concentrating on the arable sector to capitalize on export trade. Investment in livestock production facilities is a particular focus of farmers in many parts of the world, with the plans being driven by domestic requirements in many regions. The DLG-Agrifuture Insights chart of the month for July reveals that farmers in Germany, Brazil, France and South Africa are all planning to put the majority of their investments this year into facilities for livestock.

In Germany, for example, the investments are mainly aimed at implementing new requirements for improved animal welfare, and to meet the latest environmental legislation following the introduction of the country’s new Fertilizer Ordinance, such as creating additional storage space for manure. In contrast, the main motivation for investment by farmers in South Africa is planned expansion and modernization of the country’s livestock sector. In Brazil, a quarter of livestock farmers surveyed by DLG-Agrifuture Insights plan to invest in new poultry houses. This is because the global demand for poultry meat is growing, and producers want to strengthen their position in export markets and participate in the sector’s growth. Meanwhile, investment intentions in Russia focus on the arable sector, with half the farmers surveyed planning to invest in crop production and foreign trade. Increased exports are creating the opportunity to modernize farm machinery to increase efficiency and production capacity.

Analysis of agricultural developments
The findings are reached by questioning a global panel made up of 2,000 future-oriented farmers, with surveys conducted every February/March in the southern hemisphere and every August/September in the northern hemisphere. The conclusions are supplemented by continuous background research and regular interviews with top decision-makers.

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