Agribusiness sector offers strong growth potential

ON SPECIALIST MARKETS

First State's Renzo Casarotto says rising food production volumes will drive long-term opportunties in agriculture.

Agricultural commodity prices have risen this year with cotton, sugar, coffee and grains all recording substantial gains. Such moves have boosted share prices in the agribusiness sector. We remain positive about the outlook for companies involved in food production. Strong performance should be underpinned by a number of long-term factors, including global population growth, rising wealth in emerging markets and the increasing use of biofuels. Increasing per capita wealth in emerging economies such as China and India is well documented. As the population becomes richer, an increased p...