Africa Is Huge Opportunity For Agricultural Companies (DBA, MON, SYT, MOO, POT)
Jonathan Yates: Afirca’s emerging middle class presents a massive new marketplace for biotech companies such as Monsanto (NYSE:MON) and Syngenta (NYSE:SYT). The profit potential for these stocks has been detailed on previous articles on www.emergingmoney.com
According to a recent article in The Wall Street Journal by Matt Ridley, “Why Deny Biotech to a Hungry Africa,” the agriculture sector in the continent is lagging behind Asia and other parts of the world in productivity, particularly the utilization of genetically modified crops.
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“Genetic modification has had a huge impact on agriculture worldwide,” Ridley says. “More than 15 million farmes now plant GM corps on almost 370 million acres, boost yields by 10% to 255. Yet, while much of North and South America, Australia and Asia are expanding the use of GM Crops, only three African nations have them — a further four are conducting trials.”
The need in Africa for products from MON, SYT and others is great. As Ridley points out in his Wall Street Journal piece, “Over the past five decades, while Asia yields have quadrupled, African yields have barely budged.”
As noted by John Kufor, the former president of Ghana, “Africa’s agriculture has been cut off from the scientific advances whihc have transformed yields in many other parts of the world.”
Now around $80, Monsanto (NYSE:MON) shareholders have profited from these scientiic advances. Syngenta AG (NYSE:SYT) is also up.
And at about $29 a share, the exchange-traded fund for agricultural commodities, PowerShares DB Agriculture (NYSEARCA:DBA) is still down quite a bit from its year high of under $35.
Written By Jonathan Yates From Emerging Money
Emerging Money provides insightful and timely information about the increasingly important world of Emerging Market investments. CNBC Emerging Markets Contributor Tim Seymour leads the team of Emerging Money to bring you cutting edge global news and analysis.
Africa may well be one of the last places on earth where the perverting, destructive operations of the West led by the big all powerful “F… them all” US of A, has not laid waste to our so much needed and so little understood natural habitat.
Consider the yet unidentified issues with US livestock where, in much of the large rural regions, still birth and anomalities have reached a point in excess of 75%. Search the web in relation to “Roundup” and GM and you will sh.. your pants.
Of course it’s easy to advocate more food through Genetic manipulation and yes Monsanto, one of the world’s most destructive, criminal, fascist companies would stand to make a ton of money. Look where it got us so far and consider Africa the last relative in tact ecological environments where we can show we can do things differently and prove we’re not the most brain-dead, infantile species after all.