NEW YORK, Feb. 28, 2014 (GLOBE NEWSWIRE) -- When typhoon Haiyan slammed into the Philippines last year, many were puzzled why it took so long to get aid to the victims. Many went without food or water for up to five days and millions were in need of food and shelter three weeks after disaster struck.
It's not as if these natural disasters are rare. The world has been hit by more than 400 natural disasters per year over the past decade resulting in a loss of 1.8 million lives and leaving 28 million homeless. Why aren't governments, NGOs and other aid agencies better prepared to respond quickly to natural disasters? What's lacking is both a global strategy and the capital to execute it.
Recognizing this, Colorado entrepreneur Richard Lackey, supported by a heavyweight board, launched the Global Food Exchange. The company manufacturers food, water and shelter "relief vaults" and runs an electronic global trading platform to distribute the relief vaults to the world's hotspots. This is a great example of private enterprise stepping into the humanitarian arena.
The Global Food Exchange saves lives by expanding food, water and shelter reserves plus cutting costs and response times. In addition, it creates an alternative investment asset that offers investors the potential for steady, stable growth not tied to global stock markets.
As Mr. Lackey aptly puts it:
"Interestingly, when compared to most other investable assets, i.e. stocks, bonds, currencies, and even precious metals, food is arguably the most valuable commodity in the world. Does anyone believe food prices won't be higher in ten years than they are now?"
The "relief vaults" manufactured by the Global Food Exchange are 40-foot custom containers packed with emergency aid such as food, water and shelter. Each food vault contains 58,500 highly nutritious dehydrated meals with an incredible shelf life of over 20 years. The water vault contains cutting edge technology capable of producing an amazing 100,000 gallons per day from dirty or even seawater.
This is good stuff but even more important is the creation of the electronic global trading exchange. This allows organizations the opportunity to purchase and sell vaults at transparent market prices and then strategically store them in "hotspots" around the world ready for rapid deployment by rail, truck, ship or helicopter.
But all this would only be a dream without the capital needed to build and store the relief vaults.
U.S. Food Fund Supports a Noble Cause
Individual and institutional investors provide this capital through investing in the U.S. Food Fund.
Here is how the U.S. Food Fund works. Investments in the U.S. Food Fund are used to purchase the "relief vaults" at wholesale prices. The relief vaults then become fund assets and are placed for sale on the Global Food Exchange at market prices.This gives the fund the potential to deliver low-risk, steady, superior returns not tied to stock market performance. This means that the fund can power ahead even when the stock market are sinking.
Food inflation is a key reason why the fund's 12-15% target annualized return may be on the conservative side. There is a growing global grain shortage as crop yields fall, soil is depleted and water for irrigation declines. Increasing volatility in weather patterns and higher demand for food from fast-growing emerging market countries will drive prices higher.
Prices for food and beverages since 1967 have increased at a compound annual growth rate of 4.2%. This gives every incentive for organizations and governments to purchase the food emergency vaults now, rather than face higher food vault prices.
Balanced Approach Makes Everyone a Winner
The Global Fund Exchange and the U.S. Food Fund's breakthrough is the balancing of humanitarian goals and profit incentives. This balance makes everyone a winner.
The victims of natural disasters will receive better aid more quickly. Governments, NGOs and aid organizations that invest in relief vaults will receive credit for being much better prepared for natural disasters. Research shows that the first charitable organizations on the ground garner the lion's share of donations and publicity. Multinational companies that invest in the U.S. Food Fund will build enormous goodwill and brand awareness. Investors in the fund gain an alternative asset with the potential to deliver steady gains not correlated to stock markets.
About the Global Food Exchange and the U.S. Food Fund
The Global Food Exchange manufacturers food, water and shelter "relief vaults" and runs an electronic global trading platform to distribute the relief vaults to the world's hotspots.
The U.S. Food Fund is a private equity fund that finances the purchase the "relief vaults" at wholesale prices. The relief vaults then become fund assets and are placed for sale on the Global Food Exchange at market prices.
Legal Disclaimer/Disclosure: A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. Financial Press makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the authors only and are subject to change without notice. Financial Press assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.
Also, please note that republishing of this article in its entirety is permitted as long as attribution and a back link to FinancialPress.com are provided. Thank you.
Carl Delfeld Tiger Cub Partners 719.264.1503