Coronavirus on agribusiness investment header

Pause on agribusiness investment as COVID-19 eats away at certainties

Henry Wilkes, a London-based agricultural investment advisor working with Farrelly Mitchell on a Spanish food-based project believes new investments are vulnerable. “Will investors start to see distressed assets crop up, and choose those ahead of pioneering or greenfield possibilities? If so, why should they opt for riskier early stage projects, if there are proven opportunities available?”

It is an evolving situation, and the consensus among investment funds appears to be about playing the waiting game, but the potential emergence of distressed assets is undoubtedly a motivator. If there is to be growth and investment opportunities in food and agribusiness in the short to medium term, this looks a likely channel.

Specialised produce vulnerable?

With guidance in short supply, what can we deduce?

What is apparent is that farming businesses serving niche and specialised products for restaurants and other catering outlets are highly exposed. If lockdown doesn’t work and restaurants do not reopen in a conventional manner, can these businesses adapt?

Wilkes cited the example of a goat cheese manufacturer he spoke to recently who serves high- restaurants in the UK. That individual says his business will run out of money within three months.

Meanwhile in southern Europe, berry producers are under similar pressure, as restaurant demand has suddenly vanished.

Agribusiness investment specialists

The disruptive impact of the pandemic has caused much concern throughout the food and agribusiness industries, with businesses struggling to adapt to lockdown and the return to normalcy remaining uncertain.

Our risk analysis & management services can play a crucial role in navigating disruptive market and regulatory shifts and ensuring resiliency in the face of challenging times. We support businesses across the food value chain, from processing & manufacturing to sales & distribution, ensuring that all stages of the industry remain profitable and viable in the long-term. To improve your market position and safeguard your commercial future, contact Farrelly Mitchell today.


Related services and expertise

Download our Mergers & acquisitions Insight

Pause on agribusiness investment as COVID-19 eats away at certainties


Managing Director
Trending insights

✎ Subscribe today

Stay up to date with the latest agribusiness publications.

More insights

7 min read
  • CEA
  • Agtech
Vertical farming systems promise to make massive changes to global food production, however challenges remain for investors and operators. . . .

Subscribe to our newsletter

Receive the latest updates from the agribusiness world, including fresh insights and more, directly in your inbox.

Get in touch

Our team are ready to help you on the pathway to achieving your goals in food or agribusiness.

This form collects your name, email address and contact number so that Farrelly Mitchell can communicate with you and provide assistance. Please check our privacy policy to see how we protect and manage your submitted data.

Speak with our food & agribusiness experts

Want to call us directly? We’d love to hear from you.
Here’s how you can reach us.
Office Location
Unit 5A, Fingal Bay Business Park, Balbriggan Co. Dublin Ireland. K32 EH70