AAG Agri-Index rose 4.8 per cent in November
The Australian Agribusiness Group (AAG) Agri-Index rose 4.8 per cent in November, double the All Ords positive performance of 2 per cent for the month, and it is expected results will continue to improve in 2010.
The index, however, saw mixed results between its three subsectors, with the manufacturer sector gaining 5 per cent, while the diversified and producer sectors fell 5 per cent and 2 per cent respectively.
“The improving market conditions have boosted confidence in agribusiness and the 4.8 per cent rise this month, along with the impressive 15 per cent rise in the financial year to date, should encourage investors to seek their potential fortune in agribusiness,” said the research provider’s director, Tim Lee.
“The standout winners in the AAG Agri-Index — Solverdi Worldwide (up 50 per cent), Montec International (up 50 per cent), Clover Corporation (up 28 per cent), Clean Seas Tuna (up 26 per cent) and Dromana Estate (up 23 per cent) — all contributed to a positive agri image that will continue the growth of investor interest within the agri sector.”
Lee said increased activity between Australia and overseas investors would provide “abundant” opportunities for Australian agribusiness.
“Overseas investors have targeted Australian agriculture because of Australia’s unique placement and growing concerns in regards to overpopulation, food security and changes in dietary demands,” Lee said.
However, some companies in the index did struggle, including Olea Australis (down 25 per cent), Farm Pride Foods (down 20 per cent), CO2 Group (down 19 per cent), Freedom Nutritional Products (down 17 per cent) and The Ark Fund (down 18 per cent).
AUTHOR
Caroline Munro
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