Agriculture to thrive as global population soars

Published at Oct 7, 2016, in Features

As the global population continues to soar, demands placed on basic necessities will continue to rise, particularly food.

We all need to eat food right?

The United Nations forecasts that the global population will reach 9.7 billion people by 2050, from the current 7.3 billion.

Think about it for a second, that’s more than 2.4 billion people being added within a generation. We have never experienced such exponential growth before in recorded human history:

Coupled with rising incomes causing changes in dietary consumption, the global grain output will need to increase by 50% and meat output by 200% to meet the estimated global demand by 2050.

With populated countries such as China and India experiencing a surge of citizens joining the middle class, these figures may be conservative in terms of future food requirements.

All this is set to occur whilst at the same time soil quality around the world is on the decline.

Simply supply and demand logic tells us that if this trend continues we will likely see prices for various agricultural commodities increase in the coming years and therein lies an opportunity.

What can you do about it?

For investors looking at this sector, it may be worth gaining exposure to the agricultural industry such as potash, phosphate and fertilizer and the players in it such as ASX listed Brazilian player Aguia Resources (ASX:AGR).

AGR is an early stage play so investors should approach with caution and seek professional financial advice if considering the stock for their portfolio.

Speaking geographically, Brazil has the world’s largest available unused arable land, more than the next two countries, United States and Russia combined. Further to that, Brazil has the most renewable water in the world, another commodity vital in food production.

So another option for people looking to enter the sector may be to buy agricultural land and become a grower of food yourself.

That’s a pretty difficult thing to do, but if looking at smaller scales you could start your own garden in a bid to reduce your grocery bill, as current trends suggest that food prices will continue to soar in line with global population growth and the emerging middle class.

Finally, it may just be a good time to revisit some old episodes of Burke’s Backyard, fans would know that in itself is a mighty fine investment.

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!