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Highlights
- The world food prices hit a record high in February due to Russia’s invasion of Ukraine.
- Both Ukraine and Russia are considered as the breadbasket of Europe as they are one of the largest exporters of agricultural products.
The world may be facing significant consequences of the crisis between Russia and Ukraine as it will further add to the cost of living along with rising energy and food prices. On Saturday, IMF said that the current crisis and the subsequent sanctions on Russia can have a long-lasting impact on the global economy with no respite any soon.
The world food prices hit a record high in February, as Russia’s invasion of Ukraine continued to disrupt global crop trading, which is expected to further push food prices. The rise in food prices was driven by vegetable oil and dairy products to post a 20.7% increase year-on-year, the UN food agency Food and Agriculture Organization (FAO) said on Friday.
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The FAO’s food price index that tracks the international prices of most globally traded food commodities, rose by around 4% to 140.7 points last month against a downwardly revised 135.4 in January 2022. The rising food prices are further adding to already rising inflation as economies are recovering from the pandemic and the FAO has warned that the surging prices may put poorer countries at risk and affect the global supply chain.
Both Ukraine and Russia are crucial exporters of agricultural products and together, they account for around 30% of the world’s wheat supplies, besides exporting half of the world’s sunflower products.
Wheat futures in Chicago rose by 7% for the sixth straight session to US$12.94 per bushel, which significantly increased by 41% since last week. Wheat prices are at its record high since the global food crisis in 2008 and experts believe that it would further increase.
Russia is also the world’s largest exporter of fertilizers and accounts for 23% of the world’s ammonia export market, 21% for potash, 14% of urea, and 10% of processed phosphates. The escalating conflict and dependence on Russia for fertilizer may have serious knock-on effects on the global farmers and the border food system.
Let us look at five FTSE-listed agriculture stocks that you may invest in now.
Harvest Minerals Limited (LON:HMI)
Harvest Minerals Limited is an Australia-based company engaged in mineral exploration and organic natural fertilizer producer at the Arapua Fertilizer project. It holds mining and agricultural projects in Brazil. Recently, Brazil's Ministry of Agriculture, Livestock, and Food Supply (MAPA) has approved the registration of the company's organic, multi-nutrient KP Fértil as simple mineral fertilizer.
The market cap of FTSE AIM All-Share listed company stood at £20.71 million and has delivered a return of 260.38% over the last one year as of 7 March 2022. Since the start of this year, it has performed well as its year-to-date return stands at 187.05%.
Harvest Minerals Limited’s shares closed trading at GBX 11.45, up by 4.57%, on 7 March 2022.
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Kropz Plc (LON:KRPZ)
AIM-listed Kropz Plc is an Africa-based emerging plant nutrient producer with a focus on rock phosphate exploration, mining, and processing company.
The company’s market cap stood at £74.68 million and has delivered a return of 131.11% over the last one year as of 7 March 2022. Since the start of this year, it has performed well as its year-to-date return stands at 108%.
Kropz Plc’s shares closed at GBX 10.25, up by 25.77%, on 7 March 2022.
R.E.A. Holdings Plc (LON: RE)
R.E.A. Holdings Plc is oil palms cultivating company in the province of East Kalimantan in Indonesia. It also manufacturers crude palm kernel oil and crude palm oil. The company’s market cap stood at £72.30 million and has delivered a return of 189.65% over the last one year as of 7 March 2022. Since the start of this year, it has performed well as its year-to-date return stands at 30.20%.
R.E.A. Holdings Plc’s shares closed trading at GBX 178.00, up by 7.88%, on 7 March 2022.
© 2022 Kalkine Media®
Dekel Agri-Vision Plc (LON: DKL)
AIM-listed Dekel Agri-Vision Plc is an agro-industrial company engaged in the development and cultivation of palm oil plantations in Cote d'Ivoire. The company’s market cap stood at £30.61 million and has delivered a return of 20.83% over the last one year as of 7 March 2022. Since the start of this year, it has performed well as its year-to-date return stands at 22.10%.
Dekel Agri-Vision Plc’s shares closed trading at GBX 5.65, down by 0.88%, on 7 March 2022.
Also Read: Ultra Electronics, Qinetiq, Chemring: 3 FTSE 250 defence stocks to buy
Anglo-Eastern Plantations Plc (LON: AEP)
Anglo-Eastern Plantations Plc is an AIM-listed producer of palm oil and rubber with plantations across Indonesia and Malaysia. The company’s market cap stood at £290.14 million and has delivered a return of 23.33% over the last one year as of 7 March 2022. Since the start of this year, it has performed well as its year-to-date return stands at 2.77%.
Anglo-Eastern Plantations Plc’s shares were trading at GBX 730.00, down by 0.27%, on 7 March 2022.
Note: The above content constitutes a very preliminary observation or view based on industry trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
