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Love the next five years a growing urban middle class and emerging markets will lead to get -- an additional one point seven trillion dollars and demand for food.
So what kinds of food will benefit most from this and how can investors play on this idea we talked to Jose -- in swat as he has -- -- those until investment banks emerging markets lead analyst.
Just say great to see you thanks for coming and thank you very -- so let's talk about the general idea which is that as we've seen in China as you have.
A growing middle class.
And perhaps a growing up request as well.
You have a growing demand for certain things that they can't afford now and and food is among -- what kinds of food are we talking about.
Well that's a very interesting question it depends -- depends on what country depends on the market.
The most important thing is just two -- the first -- is in theory the world produces enough food for seven billion people.
The problem is 925.
-- people don't have enough to eat that's one side of the equation.
And out of that those 925 million people 90% are emerging markets.
Or the other side of the equation you have all the growth going forward -- population growth is slowing even in emerging markets but in forty years will be nine billion.
Those numbers are absolutely staggering.
Analysts wonder what the likelihood of a food -- -- is that risk.
It's a concern these days because and that's who we got allies in this report.
We don't have a lot of arable land or immigration processes to -- to the existing ones so one of the key opportunities in this report is exactly to extract more.
From the existing one we have.
And that's why we think fertilizer seed companies and there -- excellent what you just.
I got to ask you again the same question actually to really focus -- and -- 'cause I didn't get an answer from specifically tell me what kinds of foods.
Are we looking at two invested as a result of this growing middle class.
I spoke with investors.
And when when we were doing this report and I've been on the road -- -- from last -- -- It's irrelevant you know why why -- the companies who cater to those differences -- the food retail companies.
And that's the second group of companies that we -- -- in Brazil.
People -- far.
Soft and America and.
-- and brands in China they prefer western brackets that are we talking about process putting our money -- processed food companies or word degrades.
Two sides of the question won the first and the biggest opportunity is food retail companies companies like -- in Brazil.
Companies like -- fort.
That -- this is the biggest eye catching catch -- in Brazil is well.
At companies like the joint -- in Poland that owns the biggest food production called get -- -- So those companies know every -- what you want to eat and those companies have adopted through time to your change in diet because as you go wealthier.
He won't he won't meet you won't eat more fresh fresh.
The food will be more and more fruits so.
That changes but -- changes in different countries you know in India you want to you don't want to eat beef and you you know that that the meat of choice in China is pork so.
It's it's I -- I didn't -- -- reply to your question deliberately exactly because it's different in every single country.
But is there -- thesis can you say that he's growing middle classes do have more sophisticated -- these days and they are looking to spend and they have the resource is to spend more money on food.
And if that's that you're describing to us even though you have to change is that depending on which geography happened to be and do you think about that is an investor and if so what are the companies and waitress names that at us already but is that how you should play it as an investor.
The three at large group of companies that we use we've identified -- as an opportunity -- work first the agri fertilizers yeah we inputs companies.
Which we've discussed initially.
Secondly as the food we -- companies the fact is the processed food companies which we -- touched upon.
We are getting busier.
Even in emerging markets and DC are working longer hours we've seen -- in in the developed world we're seeing this scene.
So we want convenience you know we've mentioned this to find these to fund does is the largest.
In the world.
So that you know -- didn't -- the demand for sausage casings which is you know something.
Maybe -- BC that's presented his -- is growing very fast it's.
It's going to China company like vastly package the company that's that's an excellent it's clearly with 44% of its sales in emerging markets is its key play on in large markets.
What we've done with our analysts we've asked them.
You know to choose within our 610 stocks out of coverage -- of the stocks that we wanted.
And it's amazing -- reconcile that's why we haven't been pushing its pros say Martins what it's great to see -- -- so thank you very much for coming on the opportunity well.
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