Agrifood Investment Framework (Gullspång Re:Food)

Summary

• Re:food's growth equity portfolio experienced a 5.2x revenue growth with a gross-margin expansion of over 1600 bps across 21 consecutive quarters of value-creating growth.p.3
• The food system accounts for roughly 12% of global GDP and 26% of global greenhouse gas emissions, yet it receives only about 2% of private equity capital and 1.3% of climate capital.p.7
• By 2023, global agrifood tech venture capital investment declined by approximately 50% compared to its 2021 peak.p.8
• Governments currently provide roughly $670 billion per year in agricultural and fisheries subsidies, mostly supporting practices that damage ecosystems and public health.p.8
• Humanity has crossed 6 out of 9 planetary boundaries as of 2023, driven significantly by agricultural activity.p.13
• Animal agriculture accounts for 14–18% of global greenhouse gas emissions, 77% of agricultural land use, and one-third of global freshwater flows.p.28

Key insights

1. Regenerative farming and forestry practices could capture 4–6 gigatons of CO₂ annually.p.6
2. Plant-based milk products have successfully captured approximately 15% of the total milk market in the US and Europe.p.30
3. AI-driven continuous fermentation platforms can boost biomanufacturing productivity by 2x–5x and cut operational costs by up to 70%.p.33
4. Global financial flows to agrifood systems reached $95 billion in 2021-22, which represents only 7% of overall climate finance.p.36
5. About 90% of US farmers are aware of sustainable farming practices, but adoption rates remain hindered by operational and financial barriers.p.36
6. Approximately one-third of global food is lost or wasted along the supply chain, accounting for 8–10% of global greenhouse gas emissions and $1 trillion in annual economic losses.p.40
7. Adopting healthy dietary patterns can decrease an individual's risk of developing chronic diseases such as cardiovascular disease, diabetes, and cancer by 20–42%.p.46
8. The total global economic impact of overweight and obesity is projected to reach $4.32 trillion per year by 2035, equal to roughly 3% of global GDP.p.45
9. Transitioning to healthier diets in high-income countries can reduce diet-related healthcare expenses by 10–30%.p.47