- The latest FCC economic outlook suggests that climate change-led food supply chain problems may continue in 2022.
- On the other hand, the demand side can see significant growth, which would boost agricultural businesses.
- Agricultural companies need to manage their production operations and take measures to minimize the potential risk that can hurt their produce in order to exploit this market opportunity and earn significant profit by supplying their produce.
A recent Federal Communications Commission (FCC) economic outlook suggests that climate change-led food supply chain problems may continue in 2022. On the other hand, the demand side can see significant growth, which could boost agricultural businesses.
On that note, let us glance at two TSX agriculture stocks you can keep an eye on.
Nutrien Ltd (TSX: NTR)
Nutrien Ltd is a North American fertilizer company that produces crop nutrients, mainly potash, nitrogen and phosphate, to the global market.
The C$ 52-billion market cap agriculture company recorded US$ 6.02 billion in sales in the third quarter of fiscal 2021.
The Saskatoon, Saskatchewan-headquartered company also made a profit of US$ 726 million in the latest quarter, as against a net loss of US$ 587 million a year ago.
NTR stock jumped by about a per cent in a day, leading the agriculture stock to closed at C$ 95.29 apiece on Tuesday, February 8.
Farmers Edge Inc (TSX: FDGE)
Farmers Edge is a Winnipeg, Manitoba-based company that leverages its proprietary technology to improve agricultural businesses.
The agritech firm generated a revenue of C$ 6.82 million in its Q3 FY2021, as compared to that of C$ 10.33 million a year ago.
The digital agriculture solutions provider has a return on equity (ROE) of 93.90 per cent.
Farmers Edge stock closed at a value of C$ 2.4 apiece on Tuesday, having surged notably from its 52-week low of C$ 2.45 apiece.
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Agricultural companies, in general, are often advised to manage their production operations and take measures to minimize the potential risk that can hurt their produce. Taking note of these factors can help them utilize certain market opportunities and earn significant profit by supplying their produce accordingly.