Monday, May 12, 2008

Long Term Trends: Part 2: Agriculture

In Part 1 of our Long Term Trends Series, we highlighted Energy, Oil, Oil services, Oil Sands, Natural Gas, Oil Pipelines, Refineries, Oil Shipping, Coal, Coal Services, Nuclear, Environment Cleanup and Alternative Energy.

In Part 2, we highlight Agriculture.

In a previous post, we highlighted reasons why there is a food crisis and food inflation, and why these are long term trends.

This is a long term trend that we can profit from.

Select companies include:
  1. Monsanto (MON), the biotech of seeds. Do you want drought resistant seeds and higher yielding seeds?
  2. Deere (DE), farm equipment company.
  3. Potash (POT), the fertilizer company.
  4. Archer Daniel Midland (ADM), handles Oilseeds Processing, Corn Processing and Agricultural Services.
  5. Bunge (BG), handles Agribusiness, Fertilizer and Food Products.

Growth of Agriculture in Brazil

Brazil has invested heavily in their sugar cane based ethanol infrastructure. Recently, CNBC had a segment on one of their documentary shows (Business Nation?) highlighting an Iowa farmer going to Brazil and doing well there. Land is cheaper, weather is great year round, and lots of opportunities abound.

This highlights the agriculture growth story, and also shows the potential for growth in areas all around the world such as Brazil.

Agriculture appears to be a good long term trend we profit from.

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