Thursday, October 28, 2010

The 40-Year Food Outlook

The short-term (1-3 year) outlook for agricultural commodities is bullish enough. When you start looking out decades, the picture becomes one of an epic bull market.

Feast on the following highlights from an August report by the United Nations Food and Agriculture Organization, working with the Organization for Economic Cooperation and Development…

  • World population will grow 2.3 billion by 2050, to over 9 billion
  • Nearly all this growth will come in developing countries
  • This population growth will require a 70% increase in global food production
  • In developing countries, production will need to nearly double
  • Making this happen will require annual investment averaging $209 billion.

And if you break out the details, that $209 billion figure is just the private investment required if the percentage of the world that goes hungry stays static. (more)

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