WITHIN the Australian grains industry the topic of finding non-traditional sources of capital often arises as a constraint for the growth of the sector.
While the traditional family farm model has served the nation well, there is also difficult in attracting those from outside the ag sector to put their money up, especially when confronted with the massive earnings volatility caused by our uncertain climate.
However, internationally, farmers have pooled their resources and have developed investment businesses with an enviable amount of capital to invest across the agricultural supply chain.
In France, Unigrains is a powerhouse in agricultural investment, with over $A1.4 billion of its own capital and a portfolio of over 100 minority / non control investments in agribusiness, ranging from food companies to farmer co-operatives.
It arose from humble beginnings in 1963 when French grain growers decided to invest their grower levies into the French food supply chain in order to support promotion of their grain.
Australian expatriate Shane Masters is head of investment with Unigrains, based in Paris.
He said the company was dedicated to strengthening agriculture by promoting companies within the industry.
"We are always looking for opportunities for investment," Mr Masters said at Grain Growers' Innovation Generation (IG) conference.
He said Unigrains had traditionally focused on its home patch in France but had now invested throughout Europe.
"We are currently working with a brewery in Belgium, while there is work going in Italy and we are exploring opportunities right throughout northern Europe in countries from Ireland to Germany," Mr Masters said.
While it is yet to invest in Australia, Mr Masters, originally from South Australia's Eyre Peninsula, did not rule it out.
"We are always on the look out for investments that add value," he said.
He said the group's model always focused on being a minority stakeholder in its investment, rather than developing projects itself.
The grower members of the group have a key role in deciding where the investment dollars will go.