Food As An Asset Class
The world’s most inefficient market has been food and possibly the greatest opportunity exists in developing nations where established markets do not exist in large part due to a lack of grading standards, limited access to regional and global market prices, and an inability to store food for future use or sale. Though enough food is grown today to feed the world’s population, the short expiry of food causes logistical challenges, which result in widespread waste. Common food commodities have a limited shelf life and exposure to air, pathogens, moisture and pests create the perfect environment for degradation. The Global Food Exchange™ is changing that through comprehensive ecosystem of stakeholders working in partnership to do so in an effective manner.
Through advancements in the latest food drying and storage technologies, GFE can extend the shelf life of agricultural commodities and complete meals up to twenty years, essentially eliminating logistical waste issues that arise from traditional commodities that expire within 90-120 days. Furthermore, by standardizing and certifying extended shelf-life food trade, GFE establishes a new asset class for investment and financial products through two steps: prolonging shelf life and standardizing food as an asset class to fill gaps in trade. By lengthening the tradable life of the commodities from the traditional 90 or 120-day markets to 20 years, a unique ‘sister market’ is born, consisting of the same commodities as traditional exchanges, but dried slightly more and hermetically stored to retain maximum value.
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As the world dynamically changes, so must the way we think about solutions to some of our most ominous problems. It is possible to solve emergency food relief issues immediately with the use of a free market model. The creation of a vast network of accessible food relief supplies coupled with an avenue to capital markets is the first step in alleviating global post-disaster suffering. A free market model would provide immediately deliverable and affordable emergency relief supplies to those in need. It appears that Food as an Asset Class appears to be gaining significant traction in the investment community, to learn more download the independent white paper below.
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The engine behind this market of extended shelf life food and commodities is the private capital and institutional investments that can hold Food as an Asset Class as part of their normal portfolio holdings. Investment funds trading through GFE are actively building a global network of food reserves available for sale when local markets have depleted supplies and prices spike or for humanitarian response agencies that need immediate access to food for relief. These groups seek investment support from development banks, sovereign wealth funds, and private capital, potentially achieving superior risk-adjusted returns for the purpose of holding extended shelf-life food in reserve. Institutions, governments, and others should find this modern-day global strategic commodity reserve will be more than just a long-term asset, but one that offers exceptional calendar arbitrage opportunity as well as the potential for significant income from the sale of options as markets grow.
Through the Global Food Exchange and partner investment groups, we can address the widespread challenges in food insecurity. Prevention of post-harvest losses is one of the quickest and most effective ways to fill the holes of regional food security in addition to having food commodities pre-staged where and when they’re needed for use, alleviating logistical challenges inherent to mass transport. Investment partners will be able to utilize their buying power to provide price to support smallholder farmers who we believe are the key to lifting over one billion people out of poverty and ending hunger by sustainably nourishing a growing world population.
Food As An Asset Class
Global Food Exchange standardizes the grading standards and extended shelf life certifications for agricultural commodities including grains like wheat, barley, sorghum, oats as well as corn (maize), soybeans and others. These food commodities are held in reserve by investment funds trading through the Exchange, available for sale into local markets when supply is low and prices are high. When sovereign nations partner with Global Food Exchange, they take steps towards addressing food security needs for their nation’s businesses and people.
Global Food Exchange certifies extended shelf life complete meals for trade and sale to governements and relief agencies responding to humanitarian crises. These meals are nutritionally enhanced and customized for regional dietary preferences, including halal and kosher certified, for immediate distribution to displaced persons in need of nutrition.
GFE has a number of different types of complete meals available, including FortiMeal™. FortiMeal is GFE branded varieties of nutritionally-enhanced humanitarian blends that come in a number of different flavors within each base blend named below:
GFE complete meals are available in Food Relief Vaults which are optimized to be self-sufficient units for mass feeding scenarios.
Global Food Exchange™ is not registered as a financial exchange anywhere that it operates. While food manufactured for long-term benefit may be a dependable asset backed investment, the sale of products offered through the Global Food Exchange™ is not made under the guise of investment. Those professionals or organizations, properly registered and with sufficient expertise and licensure in the field of asset management, should be consulted by anyone considering an investment in food. Introducing Agents (IAs) and Executive Agents (EAs) who also carry financial certifications operate their broker-dealer and/or asset management services completely independent of the Global Food Exchange™.
Global Food Exchange™ 7840 E. Berry Pl. Suite 200 Greenwood Village, CO 80111 USA
WHAT WE DO
Drying & Storage Technologies
Food As An Asset Class
Our Mission & Vision
Letter from the Founder
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