Friday, March 19, 2010

You Wonder Why Grocery Prices Are Going Up?????

Buy food, Our Commodities Editor at Sound Of Cannons Towers West has advised us.“The world has an increasing demand for food,” he wrote, citing some nuggets from the CEO of one of his favorite ag stocks:

~The U.N.’s estimate that world population will grow from 6.8 billion people to 9.1 billion people by 2050, with Asia and Africa making up 80% of the increase
~The world will need to produce an additional billion tonnes of cereal crops and 200 million tonnes of meat. That’s a 70% increase in food supply
~Global diets are shifting from one heavily weighted toward rice to one that includes more meat, which has an exponential effect on grain demand
~Scarcity of arable land and clean water mean that most of the new production (about 80%) will have to come from increasing yields from existing farms.

“In that kind of world, a global agriculture powerhouse with a focus on bringing food to markets is the stock to own. This next chart shows you what the global trade flows for grain might look like over the next decade. Note the large import markets of South America, Africa and the Middle East and Asia.”

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