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Investors normally create great demand for defensive stocks such as food stocks during period of uncertainty and in the latter stages of bull market. However, globally this trend has changed during last couple of years. They don’t forget to include some food in their plate (portfolio) even any stage of bull or bear market. There is a good demand for food related stocks in good and bad times. Recently some intelligent investors bought food related stocks in Chinese market as they saw coming selloff in other stocks including overvalued stocks.
China might not need as much of Australia’s iron ore and coal as it used to, but its hunger for food will only grow. According to the Australian Financial Review, large volumes of farmland may be over-fertilised and become less productive in China. Listed food related stocks in the Asian Pacific region should benefit lot due to growing demand for food from Asia especially from China. Food production industries could see sustained growth over the coming years.
There are different types of food related stocks available in the CSE.
Poultry stocks: Namely BFL and TAFL
Tea related Stocks: TPL, MASK, UDPL, MPRH (Management Company of Bogawantalawa Plantation (BOPL).
Dairy related stocks: NEST, LMF
Other food related stocks: GRAN, RWSL, SOY and DIST
Currently on valuation and on industry outlook some of the above stocks are very attractive. It is also time to include some food stocks in our portfolio to get above average gain.
Good luck!
