(Submit Articles) Satori Group: Increase affluence in developing countries has investors looking far more closely at food.
“Satori Group“ is apparently encouraging clients to consider committing a larger proportion of their capital to investments in the soft commodities complex in order to avail themselves of the prospect of rising food prices in the coming years.
David White, Head of Institutional Trading at “Satori Group“, cited estimates from the World Bank suggesting that food demand will rise 50pc by 2030 because of population growth, greater prosperity and consequent changes in diets in developing countries like China and India as fundamentally sound reasons for investment in food.
“It is a well-known fact that increased affluence tends to lead to greater meat consumption but it is not just meat prices that rise as a result. 7kgs of grain are needed to feed the livestock that produce 1kg of meat which means there is greater pressure on to find more land suitable for arable use“, Mr. White said.
“Satori Group“ believes that, for investors, technologies or processes that can increase crop yields represent some of the best short-term opportunities for profit. Innovative fertilizers or seed companies are seen as good candidates at the firm but, for longer-term exposure, the firm recommends agricultural ETFs (exchange-traded funds) which invest in a number of foodstuffs including cocoa, sugar, meat and corn.
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