Monday, 23 August 2010

Profiting from food inflation

My first blog spoke of UK Faming plc being seen through 'opportunity goggles' by many including investors, carbon traders etc. Article in the Daily Telegraph gives top tips on how to profit from food inflation... and guess what, agriculture majors in ways to make a quick buck. If you have some money to invest, the journalist, Emma Wall, suggests 10 ways to get started. The article also highlights the number of agriculturally focused investment funds. For her article see: http://www.telegraph.co.uk/finance/personalfinance/investing/7955733/10-ways-to-profit-from-food-inflation.html

So what does Emma suggest? Here's her top tips:
  1. Invest in Agriculture ETFs (exchange traded funds)
  2. Buy Tesco shares
  3. Invest in Eclectica Agriculture Fund
  4. Invest in Unilever shares
  5. Invest in Morrisons shares (Morrisons now has a stake in the whole supply chain in the UK, including farming, abattoirs as well as retail)
  6. Invest in Aberdeen Emerging Markets Fund (fund managers say changes in food groups required in emerging markets and the increase in food demand will drive investment opportunities in agricultural production)
  7. Buy Sainsbury's shares (Sainsbury's has a strong connection with producers - seems to see it as a core part of their ethos)
  8. Buy Associated British Food shares
  9. Invest in Sarasin Agrisar Fund - Sarasin invests in the agricultural supply chain: from machinery to supermarkets, including fertiliser producers, irrigation developers and salmon farming.
  10. Invest in Landkom - This Aim-listed company owns land in Ukraine that yields many wheat and some rapeseed crops. Unaffected by the recent fires in Russia and poised to benefit from its neighbour’s export restrictions

5 comments:

  1. Food inflation's set to continue long-term so I would say food & ag investment would be relatively safe money.

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  2. You obviously work from a different definition/perception of what sustainability means:
    http://en.wikipedia.org/wiki/Sustainability

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  3. no I don't at all. I thought you were ref to finance. thanks for the definition though

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  4. If farmers are gonna make money Jane, so are the likes of John Deere and AgCo. Supermarkets are into more than food production. Now if you could buy into Cargill... but you can buy Bunge and some other big players.

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