Trusts that invest in ‘infrastructure of food’

ANOTHER option for investors is to look at infrastructure investment trusts – funds that are listed on the stock market and have a food-related theme.

There are some funds that invest in anaerobic digesters – where animal waste is used to produce biogas or fertiliser. These include JLEN Environmental Assets Group and GCP Infrastructure Investments.

Sustainability is one of the biggest challenges for the food sector and the companies that meet the growing demand for improvements will be winners.

Luciano Diana, who runs Pictet Global Environmental Opportunities, says he sees the Amazon deforestation as a protein problem. He says: ‘This is done to create land to grow crops to feed animals and us. In the not too distant future, we may either have to change our eating habits and eat less meat, or grow it in laboratories – which sounds unappealing but is a real possibility.’

Juliet Schooling Latter, of fund broker Chelsea Financial Services, says: ‘The livestock industry has an enormous carbon footprint. Cow, sheep, and poultry farming accounts for 18 per cent of humanproduced greenhouse gas emissions worldwide. That’s more emissions than those from ships, planes, trucks, and cars put together.’ Investors wanting to focus on a narrow food investment could buy a low-cost exchange traded fund that invests in anything from livestock to coffee. Popular funds include iShares STOXX Europe 600 Food & Beverage, iShares Diversified Commodity Swap, WisdomTree Sugar and WisdomTree Wheat.