As China and India grow wealthier, the demand for meat grows. Cattle need to be fed with grains so there will be a huge demand for fertiliser to produce the increase in the demand for cattle feed.
Did you know:
It takes 7kg of grain to produce 1kg of meat. Nearly half of the world's grain is used for feed.
So it's not surprising to see BHP Billiton announce a takeover for Potash, a Canadian fertiliser company.
Analysing the above information I figured if we were to obtain AWB shares and keep it as an Australian company they in due time the share price could potentially rise to its highs that they were before the GFC. I'm new to this share market game but it makes sense that Australia is still an excellent commodity producer. AWB share price only looks like going up from here on in. Wouldn't we be better off being a little more patient?
AWB Price at posting:
$1.47 Sentiment: Buy Disclosure: Not Held
