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Agribusiness with Focus on Fertilisers
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Insights
April 18, 2024
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Agribusiness with Focus on Fertilisers

Investing in the agribusiness sector, with a focus on fertilisers, offers an attractive yield enhancement while holding position in a strategic investment theme globally. The world’s major crop nutrients are nitrogen, phosphorus, and potassium. Nitrogen is manufactured through synthetic chemistry, while potash and phosphate are primarily mined. Major crops such as corn, soybeans, and wheat rely on all three nutrients.

In this context, we have 4 well-known names and industry leaders: Bunge, BASF, FMC and Nutrien. These companies' diversified portfolios, global presence, and commitment to innovation make them attractive long-term investment opportunities in the segment, driven by fundamental factors such as food demand, technological innovation and sustainability.

  • Growing Population and Food Demand: With the global population expected to exceed 9 billion by 2050, the demand for food is on the rise. This will necessitate increased agricultural productivity, which heavily relies on fertilisers to enhance crop yields.
  • Technological Advancements: The agribusiness sector is witnessing significant technological advancements, such as the development of smart fertilisers and precision agriculture techniques. This enhances efficiency and reduces the environmental impact, making it an attractive investment opportunity.
  • Shift towards Sustainable Agriculture: There's a global trend towards sustainable agriculture practices, including the use of precision fertilisers and organic inputs. Companies in the agribusiness sector are innovating to meet this demand, offering environmentally friendly fertilisers and solutions.

This way, based on the rationale mentioned, the investment structure proposed brings exposure to 4 leader companies in this sector with a defensive level of protection on the downside, yet with an attractive guaranteed coupon payment.

The following stocks have been opted to elucidate on this investment idea:

  • Bunge
  • BASF
  • FMC Corporation
  • Nutrien

More details are available in the full Trade Idea

Reverse Convertible Autocallable | Product Snapshot
For informational purposes only. Not investment advice.

By the Research Team

Insights
April 18, 2024
Agribusiness with Focus on Fertilisers

Investing in the agribusiness sector, with a focus on fertilisers, offers an attractive yield enhancement while holding position in a strategic investment theme globally. The world’s major crop nutrients are nitrogen, phosphorus, and potassium. Nitrogen is manufactured through synthetic chemistry, while potash and phosphate are primarily mined. Major crops such as corn, soybeans, and wheat rely on all three nutrients.

In this context, we have 4 well-known names and industry leaders: Bunge, BASF, FMC and Nutrien. These companies' diversified portfolios, global presence, and commitment to innovation make them attractive long-term investment opportunities in the segment, driven by fundamental factors such as food demand, technological innovation and sustainability.

  • Growing Population and Food Demand: With the global population expected to exceed 9 billion by 2050, the demand for food is on the rise. This will necessitate increased agricultural productivity, which heavily relies on fertilisers to enhance crop yields.
  • Technological Advancements: The agribusiness sector is witnessing significant technological advancements, such as the development of smart fertilisers and precision agriculture techniques. This enhances efficiency and reduces the environmental impact, making it an attractive investment opportunity.
  • Shift towards Sustainable Agriculture: There's a global trend towards sustainable agriculture practices, including the use of precision fertilisers and organic inputs. Companies in the agribusiness sector are innovating to meet this demand, offering environmentally friendly fertilisers and solutions.

This way, based on the rationale mentioned, the investment structure proposed brings exposure to 4 leader companies in this sector with a defensive level of protection on the downside, yet with an attractive guaranteed coupon payment.

The following stocks have been opted to elucidate on this investment idea:

  • Bunge
  • BASF
  • FMC Corporation
  • Nutrien

More details are available in the full Trade Idea

Reverse Convertible Autocallable | Product Snapshot
For informational purposes only. Not investment advice.

By the Research Team

partage Mail LinkedIn WhatsApp