Agribusiness MIS support plummets
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Australian agribusiness managed investment schemes (MISs) took a solid hit last financial year, recording a 77 per cent decline in funds invested, according to new research issued by Australian Agribusiness Group (AAG).
The AAG research revealed that just $250 million had been raised in the agribusiness MIS sector last financial year, representing a decline of $829 million over the previous 12-month period.
Commenting on the research, AAG director Tim Lee said the 2008-09 total investment figures were the lowest recorded since AAG started its annual survey in 2001-02 and substantially below earlier predictions.
He said the drastic falls were clearly indicative of the current turbulence in the agri-MIS industry caused by the collapse of Timbercorp and Great Southern and tightening economic and market conditions.
The AAG report also revealed that the number of individuals investing in agribusiness projects had fallen sharply, down 69 per cent from 24,300 investors in 2007-08 to just 7,560 last year.
“While a significant fall in consumer confidence was expected given recent upheavals in the sector, the extent to which public support, and subsequently agribusiness investment, wavered was surprising,” Lee said.
He predicted that the agribusiness MIS sector would face major changes in coming years as a result of regulatory and parliamentary inquiries and the need to rebuild investor confidence.
AUTHOR
Mike Taylor
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