Rob Coyte's Blog
Recent Blogs
- Pardon? 15-May-2012
- Bank practices during the GFC 12-Apr-2012
- Current State of Dividends for Shares 19-Mar-2012
Request a topic
What is going to be in huge demand as the world’s population grows?
A report released by the UN of world food prices in December showed that they had reached record levels, surpassing its previous high of June 2008. It will be remembered that in that year there were “food riots” in Haiti and other countries as people could not pay for their daily food requirements. Unlike then, the prices of some staple cereals such as rice remain relatively stable, though the price of wheat is rising. The increasing costs of other cereals and sugar were the main factors behind the rise in the index which will only get worse as population grows and farming land becomes more scarce due to urbanisation.
The impact of food costs are further exacerbated by natural disasters such as floods and droughts which also disrupt production and supply.
As investors there are a number of ways that we can look to benefit from owning assets in the “food chain” over the long period that this will play out.
The impact of food costs are further exacerbated by natural disasters such as floods and droughts which also disrupt production and supply.
As investors there are a number of ways that we can look to benefit from owning assets in the “food chain” over the long period that this will play out.
Comments