Protect your Retirement Income from Future Food Inflation with this Simple Strategy

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Protect Your Retirement Income from Future Food Inflation with this Simple Strategy Photo credit: Flickr/WayTru

Transcript of Protect your Retirement Income from Future Food Inflation with this Simple Strategy

Page 1: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

Protect Your Retirement Income

from Future Food Inflation with

this Simple Strategy

Photo credit: Flickr/WayTru

Page 2: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

The Problem:

Over the next 50 years farmers need to produce

more food than they have produced over the past

10,000 years.

Page 3: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

The Problem:

The driving force is population growth, with the world’s population expected to reach 9.1

billion by 2050.

Page 4: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

The Problem:

The driving force is population growth, with the world’s population expected to reach 9.1

billion by 2050. Credit: Flickr/Lauren Manning

Page 5: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

The Problem:

Meanwhile, more of the world is rising into middle class, which is increasing the demand for protein.

Page 6: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

The Problem:

The driving force is population growth, with the world’s population expected to reach 9.1

billion by 2050. Photo credit: Flickr/Mark Turnauckas

Page 7: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

The Problem:

On top of that there is less arable land to grow

crops…

Page 8: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

The Problem:

…as well as more droughts.

Page 9: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

The Problem:

The driving force is population growth, with the world’s population expected to reach 9.1

billion by 2050. Photo credit: Flickr/Robert Couse-Baker

Page 10: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

The Problem:

This scenario means that world food production needs to rise by 70%...

Page 11: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

The Problem:

…while food production in the developing world

must double.

Page 12: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

The Problem:

To double food production in the developing world alone investments must

rise by 50%.

Page 13: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

The Problem:

This will put a tremendous strain on nutrient levels in

the soils.

Page 14: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

The Problem:

The driving force is population growth, with the world’s population expected to reach 9.1

billion by 2050. Photo credit: Flickr/Bert Kaufmann

Page 15: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

The Opportunity:

However, that’s also a tremendous opportunity for fertilizer companies…

Page 16: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

The Opportunity:

…which can supply the potash, phosphate and

nitrogen needed to bring nutrient levels back to

proper balance.

Page 17: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

Potash facility in Saskatchewan. Photo credit: Flickr/Just a Prairie Boy

Page 18: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

The opportunity

Under this scenario food inflation is quite likely. However, you can protect yourself

from some of this inflation by investing in the fertilizer companies that will supply the

world with needed plant nutrients.

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PotashCorp

• World’s largest fertilizer company by capacity.

• Produces all three primary crop nutrients (potash, nitrogen and phosphate).

NYSE: POT

Photo credit: Flickr/Alisha Vargas

Page 20: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

Agrium

• Major retail supplier of agricultural products and services.

• Global producer and marketer of agricultural nutrients and industrial products.

NYSE: AGU

Photo credit: Flickr/Noel Zia Lee

Page 21: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

Mosaic

• One of the top four producers of potash in the world.

• The top phosphate producer with more capacity than the next two largest producers combined.

NYSE: MOS

Photo credit: Flickr/Dodo-Bird

Page 22: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

Bottom line

• All three companies are well positioned to take advantage of the future need for crop nutrients.

• Each continues to expand capacity to meet future demand.

• However, each offers investors a different opportunity set.

Page 23: Protect your Retirement Income from Future Food Inflation with this Simple Strategy

Bottom line• PotashCorp is a direct investment in all

three crop nutrients and it pays the best dividend of the bunch.

• Agrium also produces all three key crop nutrients as well as having a strong retail presence in the agricultural sector.

• Mosaic is more of a pure play on potassium, with a strong dose of potash.