Agri sector ripe for picking in APAC

According to ANZ’s Head of Food, Beverage & Agriculture, International Patrick Vizzone, conditions for activity in the Philippines and broader Asia Pacific region are currently ideal.

"[There is] actually quite a bit of interest in inbound investment and we would expect that value investment piece… to continue over the coming years.” - Vizzone

Speaking to bluenotes on video from the Philippines, Vizzone said those two main ingredients essential for driving growth in the sector were in abundance in the region – and reminiscent of conditions seen in China before the beginning of its boom.

“You've got both of those factors in ASEAN and the Philippines,” he said. “You've got some of the fastest-growing markets in the world - very young, very dynamic and entering into what we call the demographic dividend which is something that we saw 20 years ago in China.

“That's something that's going to propel growth going forward and that in turn is propelling investment.” 

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Vizzone said M&A activity in agribusiness during the medium-term in the region had been focussed on two things.  

“The first is more food security and security supply,” he said. “We’ve see investments from companies throughout ASEAN into Australia and New Zealand and in different subsectors – beef being one of the key ones.”

Vizzone listed purchases by Indonesian interests in Australia properties this decade – including Willaroo Station and others - as key examples of this, cases of Indonesia securing supply of beef.

The second factor he said was “aspirational consumption” – securing leading brands in Australia and New Zealand for the domestic markets but also bringing those brands into Asia.

“[There is] actually quite a bit of interest in inbound investment and we would expect that value investment piece… to continue over the coming years,” Vizzone says.

He also spoke about the future of the milk sector, rising consumption in China and how this will play out in the region. Watch the video above to find out more.

Anna Green is CEO at ANZ Philippines