The following article was published in The Times on Saturday 09th March in David Budworth’s article ‘Feeling Adventurous? ISA tips for the bold investor’.
“Extreme weather, from drought in America to washout conditions in the UK, pushed up the prices for cops last year such as corn, wheat and soya beans. And as supply struggles to keep up with demand the view is growing that this is not just a flash in the pan. By 2050 food production will need to increase by at least 70 per cent as the world’s population jumps from its current 7 billion to 9.3 billion.
One way to tap into this theme is the Sarasin AgriSar fund. Mike Horseman of Cockburn Lucas, the independent financial advisers, says: “We like Henry Boucher, lead manager of Sarasin Agrisar, and also the team at Barings in this sector, and feel if you’re going to own equity that this theme is worthy of backing as a riskier investment.
“The figures make it clear that our current food supply is unsustainable in the medium to long-term and that this can only be solved through extensive investment in global agriculture, which will help increase crop yields.
“Investing in well-run companies which are focused on mechanisation, crop protection, seed technology and fertilisers, will go a long way towards strengthening the global food supply chain. This can also ensure that investors can profit, alongside their principles.”
The views expressed in this article do not constitute financial advice. It is important to seek independent financial advice.