Saturday, July 10, 2010

7 Ways to Play This Hot Sector

The Food and Agricultural Organization of the United Nations (FAO) estimates that about 1.02 billion people are undernourished as of 2009 -- the highest amount since 1970. The global crisis of 2008 certainly didn't help, as remittances, aid, and foreign direct investment all decreased rapidly, leaving many of the world's poor without food or peripheral options.

According to the World Bank, "Over the 1981 to 2007 period, the share of net aid flows to developing countries has become negative for Latin America and for East Asia, and it has declined substantially for South Asia."

Investment in agricultural must increase in the next few decades if we expect this trend to reverse -- it worked in the 1970s and 1980s -- and there are certain ramifications for global businesses considering the magnitude of investment needed. (more)

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