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Friday, June 24, 2011

What Is On My Plate?

Once upon a time villages used to abut Cities and now its cities that reach upto the villages,that is how urbanisation is spreading its tentacles and for me its as noxious as pollution,cancer or tobacco!

Rising population and reducing agricultural land to grow staples is the main reason why the inflation in India is not falling despite fiscal measures,policy meets etc

I am bullish on companies that are buying up land to grow crops,eq KGL,which has bought thousands of acres in Kenya,Tanzania,Sudan(although i have my apprehensions about the management).This is the space where scalability will not be a factor and the clamour for food will ensure high prices.

I am bullish on wheat(low prices this year notwithstanding),maize,soya,oilseeds.Those who cannot trade in commodities can alternately invest in those firms that deal in food products.

Another thought that has been in my mind is the propagation of processed foods that will form a  30-40% part of daily life in the next 5 years up from the current 5%.Obesity,high salt content means more healthcare.

If I was a longterm investor i would buy into food&healthcare and ensure I exercised regularly,ate healthly and thought positive!

P.S.Those of us in financial services have not thought positive for the last six months!