How To Profit from Rising Food Prices
The global food crisis is here again, and it’s more urgent than ever. In this video, I’m going to show you how to profit from rising food prices by investing in the right agricultural products and companies. You’ll see that it’s never too late to make money from the volatility of food prices and learn how to get access to exclusive bonus material.
Why is Food Becoming More Expensive?
The cost of food is becoming more expensive because the demand for food has increased. This is because people are earning more and they can afford to buy more expensive foods. Global Economist have noted, As people get richer, they tend to switch away from a predominantly vegetable-based diet to one that includes meat. Lots of it. Especially in places like India where the population is over 1.4 billion people. Technology has also made it easier for people to buy food online and have it delivered to their doorsteps.
Another reason food is becoming more expensive is because of the amount of growing, urbanizing populations. As more and more cities around the world begin to emerge, the amount of land available for arable use drastically diminishes.
Other factors paying a part in the rising cost of food are changing weather patterns. Some areas of the world have seen historic droughts and have lost large amounts of their crops and abilities to farm. For example, over 50,000 farmers in Australia lost irrigation to their farmlands after drought conditions caused the government to shut off water supplies. Similar situations have occurred in places such as Guatemala as well.
Inflation has also been a factor in the rising cost of food. This is because inflation causes prices of goods to increase over time. Inflation happens when there is a general increase in the price level of goods in an economy over a period of time, usually a year or two.
There are several factors that have led to the increase in food prices, including a decline in the value of the U.S. dollar and a rise in commodity prices. These factors have also led to an increase in food insecurity, which is defined as having limited or uncertain access to affordable, nutritious food.
How are Retailers and Supermarkets Responding to Rising Food Prices?
Retailers and supermarkets are responding to rising food prices by increasing the price of their products. The main reason for the increase in food prices is because of the cost of labor and transportation. The cost of labor has increased due to minimum wage increases and a shortage of workers since the Pandemic. Transportation costs have increased due to tariffs on steel and aluminum imports. The retail industry has been hit hard by these changes and has responded by implementing new strategies for managing their supply chains, such as reducing inventory levels and increasing product variety. Supermarkets are also looking for ways to reduce their operating costs, such as through store closures and layoffs.
How the biofuel bubble affects food prices?
The surging price of oil has understandably created huge interest in finding alternative sources of power to cut dependence on the black stuff. The International Energy Agency estimates that demand for crops for biofuels is set to soar from 41.5m tons of oil equivalent in 2010 to 92.4m by 2030.
In the meantime, investors should expect much higher food prices and shortages because these structural imbalances are a new long-term trend. If global warming turns out to be as bad as scientists suggest, ‘they will accelerate’. That means there are profits to be made:
So, How to gain from booming food prices?
Investors looking to get exposure to food prices can now invest directly in agricultural commodities. You can also invest in companies that stand to benefit from rising prices. Agricultural businesses are worth a look. For example, Swiss-based firm Syngenta is a crop-disease-protection company, producing herbicides and insecticides as well as seeds for crops.
A less obvious play on food shortages would be US-based DuPont. This company supplies its chemical, biotechnology and pharmaceutical products to industries as diverse as textiles, construction and agriculture. Crucially, it is also involved in the area of hybrid seeds, which will become far more important as countries look to boost crop yields due to populations increasing and cultivated land decreasing.
Hedge Fund manager, Chris McIntosh and his expert team at Capitalist Exploits discuss a variety of agricultural commodities using a high reward asymmetrical investing strategy. Private members of their Insider Resource subscription get access to the direct trades of the Hedge Fund as well as guidance, private Q&A’s, from a world renown 30+ year Hedge Fund manager.