If a "lower input paradigm" is on the agenda, which as I read it, is basically the swapping of plantable land for grazing pastures, then it would be a catalyst for increases in the price of grains for 2 reasons, firstly there would be less supply, secondly don't these animals need to be fed?
Will it happen that as the GFC media coverage dies, and existing issues such as food shortages re-imerge, then the upwards slope of the "V" is going to be quite steep? I can only see this as a huge positive for companies linked to that industry, including MAK. But I guess none of know when..........?
Maybe there will be a triple whammy of 1. less supply (of grain) which will force grain prices up 2. more demand (more animals to feed inc humans and farm) and 3. under-producing fields (due to previous lack of fertilisation) that need to be fertilised?
But I don't think anybody can say which will lead, will it be grains, or will it be fert?
AEV Price at posting:
46.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)