At Last There Are Signs Of Growth

Julian Beaumont, investment director, Bennelong Australian Equity Partners

The agricultural sector has been a difficult one for investors historically. Ag companies have generally required significant capital investment, produced low returns on that capital and been at the mercy of the weather, crop damage and price fluctuations. Reflecting as much, the largest ASX-listed ag stocks – GrainCorp, Australian Agricultural Company and Nufarm – have been volatile but essentially gone nowhere over the long term.