The recent credit crisis has dampened short-term loans made by banks to farmers for fertilizer, seed and various chemicals, all of which are desperately needed to improve the health and duration of their crops
Nevertheless, agricultural companies should not be shunned here. They offer a unique long-term opportunity for those investors who believe in the global growth story.
Despite a global recession, people around the world need to eat. As the demographic trend shifts from starch-based diets to protein-based diets, agricultural companies that are positively positioned to capture this trend will likely move higher.
Additionally, the proposal of several strategic acquisitions within the agricultural sector supports the long-term value thesis within the agricultural sector as a whole.
No comments:
Post a Comment