From China to Blackrock Money Management the buzz is getting a piece of Organic front-end production, not back-end commodities. A shift in organic sales has cultured a spontaneous shift in where the important place to be is.
In 2011, consumers worldwide took organic produce to be not just for the rich or health conscience, but for everyone. Organic Vegetable Sales alone rose 26% in the United States. The supply is rising faster now than ever before. “Organic” has become the preferred choice, not just a polite nudge toward perceived guilt-free living. Money Managers have thought critically about this…
As reported today by Bloomberg the fund managers at Blackrock have decided to put their bets on the production of organic food rather than the crop and distribution of organic food. This is a very important shift – one that matters for forecasts looking at food for 9 BILLION people by 2050.
Water, irrigation, better seeds, better sowing, better machinery and improved yield are the front-end of a crop/harvest/livestsock. The NYTimes posted this great graphic for cereals (for example) compared to irrigation and the need to import such grains highlights the needs of better irrigation. The world’s healthy wet zones are a poorly distributed relative to the World’s varying needs for grains (organic or not). The front-end needs work.
China’s first public document for 2012 recognizes improved agriculture as the linchpin to a healthier population and more affordable organic future citing that over 90% of China’s high-end vegetables, plants and flowers come from imports.
The government also is eyeing major achievements in the development of agricultural bio-technology, breeding, new materials, precision farming, water-saving irrigation, new fertilizers, epidemic control, marine agriculture, product processing and shipping, and farm equipment. ¶ Particular emphasis will be given to scientific innovation in seed production, the document said. Source
A lot of spontaneous similar ideas in the news today. Thought you might find it interesting too.
