Alternative Assets: Productive Farmland

Written By Outsider Club

Posted May 27, 2014

The World Health Organization (WHO) recently released a breathtaking and comprehensive report on antibiotic resistance titled “Antimicrobial Resistance: Global Report on Surveillance”.

At Liquid, we have been highlighting the dangers posed by antibiotics overuse for some time now. It was a major theme for our updates to investors in 2013 and retracing our steps further back, was one of the key reasons for our focus on ethically produced crops to provide natural solutions to many current day problems. Yet we admit to being a little taken back by just how much coverage this issue has received over the past year. We view the moves as being commercially positive for our business.

Number Of New Antibacterial Drug Approvals

Number of New Antibacterial Drug Approvals

It is incredible to think that over the last 30 years, no major new types of antibiotics have been developed. The high costs and regulatory hurdles associated with antibiotics (imagine the type of pressure companies will be under to keep pricing of any new drugs ‘affordable’) means that just 5% of drugs in development in the US in 2013 were antibiotics. For pharmaceutical companies, the potential rewards do not correspond to the higher levels of risk in research and development.

The key points to highlight from the WHO report are that:

  • This life-threatening antibiotics overuse is occurring throughout the world, with the ability to affect anyone at any age  
  • Antibiotic resistance is not a scenario against which we might need to prepare in the future. It is already happening… 

The report is 254 pages long and is the most extensive ever produced on the subject. It concentrates on antibiotics resistance across seven different bacteria responsible for serious and common diseases such as bloodstream infections (sepsis), diarrhoea, pneumonia, urinary tract infections and gonorrhea. In many cases the antibiotics relied on are ‘last resort’, and fast eroding effectiveness means there is nowhere else to go. Some antibiotics introduced in the 1980s were successful in controlling any resistance. Yet these same antibiotics used to tackle some of the conditions described above are now ineffective in more than half of the patients recorded, all in the space of 30 years.

  • 50% of antibiotics prescribed to humans are not needed. In agriculture the figure is 80%
  • Resistance to drugs kills an estimated 23 million people a year
  • Antibiotic resistance costs the US economy $55 billion annually

Previous newsletters highlighting this issue:
Bioterrorism in the 21st Century
Danger – Bacteria are Evolving!
Investing in Neem – Capitalizing on Natural Solutions
GMO Free – why it’s the way to go

We have recently highlighted the UK’s Chief Medical Officer describing “a 19th century environment where infections kill us as a result of routine operations.” This is because any operation that relied on suppressing the immune system (and so opening up the possibility of vulnerability to infection), or accessing the bloodstream would be a source of possible danger. All the following are threatened:

  • The ability to treat cancer, to transplant organs and kidney dialysis
  • Surgery on the heart, abdomen or lungs
  • Surgery on parts of the body already containing bacteria – the bladder, gut or genitals
  • Replacement surgery – new hips or heart valves
  • Trauma surgery
  • Safe childbirth 

The Implications For Food Supplies And Pricing

The list above is by no means comprehensive: in fact it veers off into the primal need for food. Non-functioning antibiotics would have a significant negative impact on our food supplies because most livestock is reared using antibiotics (both to fatten and protect them). If antibiotics for livestock are no longer effective, the result will be food shortages, which would result in higher prices.

A Natural And Viable Alternative

A wide range of moves can be taken to attempt to reverse the situation, with the UN highlighting that antibiotics should never be shared with other people who have different ailments and that the full course should be completed, even if people feel better.

Investing in Agriculture: Neem

The Simple Solution To A Complicated Problem

Neem’s effectiveness as a natural antibiotic for use in humans is the result of not disrupting the body’s natural ecology, while preventing the build-up of any resistance over time. As a natural insecticide it works on the hormonal system of insects and is effective against 500 different species. It has been used successfully for centuries on the Indian sub-continent in such a role.

Neem oil offers a valuable non-toxic alternative that can be used as a substitute for chemical antibiotics to prevent the development of tuberculosis. In the laboratory, extracts from neem have been used to inhibit the advancement of HIV/AIDs by attacking a protein essential for the replication of the virus. In a number of extensive field trials in Africa, neem has been proven to be a simple and effective deterrent against malaria. The oil possesses strong antiseptic properties and is efficacious against a wide variety of skin diseases.

Nature knows best. Neem is a wonderful product well known in native lands for its ability to provide sustenance, shelter or medicine. Yet we realize that our co-investors will also be keen to enjoy the rapidly growing comercial considerations for the crops. One good example is that our initial projects for neem oil pricing were for a conservative $15 (USD) a liter. No doubt helped by the global health furore, the current price is $48 (USD) a liter, a huge 220% increase, which we have been paying so that our factory has a sufficient amount in order to produce our neem derived products.

We are immensely proud but not complacent that by concentrating on a niche area of the alternative investments market that remains undersupplied with proven concepts, we are right at the front of the queue when it comes to generating superior returns for our investors. The investment picture remains incredibly encouraging.

Widely reported in the global media, the release of last week’s report is the most dramatic of wake-up calls by a widely respected global organization. The pressure is on to find the solutions that are clearly needed to face the enhanced level of danger we are all facing. The health benefits present in neem will play their part in offering natural preventative solutions to the problems so graphically laid out by the WHO.

Little wonder that our initial projections for neem oil pricing were a mere conservative $15 (USD) a liter and yet we have recently had to pay $48 (USD) a liter*. This price move has due to the global health furore, the awareness of neem’s ability to help meet the challenge and ultimately insufficient supplies in the market.

The investment opportunity that is brought about by these issues is astounding and consideration to portfolio exposure to this unique “ahead of the curve” investment is something that we highly encourage. We at Liquid Investments are looking to maximize this “holy grail” opportunity, emboldened by our appreciation for true added value, added returns and added profit potential. What’s more, this wonderful potential is underpinned by an asset-backed secure, package of agricultural land that itself is growing by 20% per annum.

Experience has taught us that when unparalleled profitability presents itself, Carpe Diem (seize the day) is the wise and only appropriate action.

We advise all interested parties to educate themselves to the benefits of this amazing tree called Neem and request a brochure, watch the related videos and ask any questions that may help in your due diligence process so that you can make a personal, informed, investment decision and not let this unparalleled set of circumstances pass by without full investigation and portfolio consideration.

Asset Diversification: Agriculture        Diversifying Into Agriculture