Agri-food companies advised to look to private venture sources for funding

Food processors and dairy co-ops must look to private venture sources to ease their reliance upon banks, says a leading agri-food analyst.

Cathal Fitzgerald, finance director with AgriFood Business Partners, said US agri-food companies source 80% of their funds from private venture capital, versus just 20% from venture capital sources in the EU’s agri-food sector.

In terms of venture capitalists gaining a return on investment, he also predicts a switch in focus onto cash flow, and away from capital assets such as land values.