Desmond Sheehy, CIO, Duxton Asset Management on food security and the concept of ‘peak food’

Desmond Sheehy, Chief Investment Officer, Duxton Asset Management talks about food security and the concept of ‘Peak Food’ to the Arabian Radio Network ahead of the Global AgInvesting Middle East 2013 conference held in Abu Dhabi between February 25-27.

The radio interview can be heard via the media player below.

Audio source: Arabian Radio Network

 

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Duxton’s Agri Bits and Pieces Vol. 119

QUOTE OF THE WEEK

“We act like a snack, not a vegetable. We exploit the rules of junk food to fuel the baby-carrot conversation. We are pro-junk-food behavior but anti-junk-food establishment.”

– Jeffrey Dunn, who, in 2001, at age 44, was directing more than half of Coca-Cola’s $20 billion in annual sales as president and chief operating officer in both North and South America quoted in the forthcoming book “Salt Sugar Fat: How the Food Giants Hooked Us”.

Dunn now runs a food production venture in the San Joaquin Valley. He is planning to market carrots to a special segment of the 146 million Americans who are regular snackers — mothers, children, young professionals — people who “keep their snacking ritual fresh by trying a new food product when it catches their attention.”

CURRENCY CRISIS HITS EGYPT WHEAT SUPPLY

Egypt, the world’s largest wheat importer, is struggling to buy the staple in the international market because of a currency crisis, creating a fresh challenge for the government.

Grain traders shipping wheat to Egypt said Cairo had cut back on its…

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Duxton’s Agri Bits and Pieces Vol. 117

QUOTE OF THE WEEK

“We’ve had a long period of food real price declines and food surpluses and we’ve had three very rapid food crises. The price inflation that we’ve seen in the three episodes is more a structural story and not a cyclical issue”

Sunny Verghese, chief executive officer at Olam International.

Verghese argues that food prices that doubled in the past 10 years are more the result of population growth and increased demand for protein-based diets than any cyclical reasons.

Three of the biggest annual gains in food prices in the past 20 years occurred since 2007, with the United Nations Food & Agriculture Organization’s global food price index climbing to a record in 2010. Wheat and soybeans led commodities gains last year and corn jumped to a record in August.

Countries from India and Egypt to Vietnam and Indonesia banned exports of rice, a staple for half the world, during the 2008 food crisis. Russia in 2010 banned cereal exports after the country’s worst drought in at least half a century destroyed crops and cut production.

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