The Insider’s Guide to Food Investing—Including 38 Picks!
It’s time to be bullish on everything related to food—restaurants, food producers, fertilizers, equipment makers, even water, says Ramesh Gulati. He tells Kate Stalter about a slew of well-known and not-so-well-known names that could benefit by growing demand for agricultural products.
Kate Stalter: Today, I’m speaking with Ramesh Gulati of Gulati Asset Management.
Now, Ramesh, we’ve spoken before. The last time we talked, you had some ideas about the agricultural sector. Can you give us an update of what that’s looking like these days?
Ramesh Gulati: Yeah, thank you very much, Kate, I appreciate the opportunity. Yes, my name is Ramesh Gulati of Gulati Asset Management as you had mentioned
Just before we start, just as a little disclosure, just to let the public know that any of the companies that we talk about, Gulati Asset Management and its clients, may or may not have long or short positions in those names, and also before you make any financial decisions, talk to your advisor.
Going forward, yes, agricultural is an area that has gone up and down pretty violently over the past year or so, because it tails into the dollar. With the change in the euro and the dollar increasing, because most of these agricultural commodities are dollar-based, with the dollar increasing, a lot of these commodities will decrease.
We’ve seen a lot of different swings in the commodity area. I think in the longer term, if you look at the demographics, you’ll see a lot of these developing nations are moving up the food chain, where people that used to eat rice now want to eat chicken and meat.