The modern world is increasing in population at an estimated rate of 1.1%. The highest estimated growth rates where estimated at 1.8%. However,the growth rate of 1.1% is steady. A simple analysis of capitalizing on world population is the idea that more people require more food. What does it take to create more food? First we must understand the process of growing food. Fertilizer is essential to the growth of food. Without it food cannot be grown. Fertilizer is what all farmers need to grow crops. Fertilizer is considered a commodity just like gold,silver,copper,or oil. With the growth in population and the need for more fertilizer to grow more crops to feed more people, the supply and demand of the market is off balance. When demand outweighs supply for a commodity, its price will increase. To capitalize on this market one must invest in fertilizer companies. Potash corp is one of the worlds largest potash producers. It’s stock has risen to meteoric heights over the past three years. I’d say I’ve personally missed that move. However, I’ve found an interesting play in a potash miner in Austrailia who holds thousands of acres of land rich in phospate(fertilizer). Whats great about this company is it has a contract with the Indian government to supply a specific amount of phospate per month. India is starving for phospate to help feed its enormous population. Also, this company is strategically located next to a railway and port making its logistics fantastic. Finally, the team leading the company is lead by Joseph Gutnick, a wealthy jewish entrepreneur with great insight into the mining and exploration business.
Why Invest in Legend?
The demand for fertiliser and the nutrients that make up fertiliser will only grow.
- Mineral fertilisers are the only means to enrich the soil, there is no substitute for Phosphorus.
- World population is growing (70-80million people to be added next year).
- Bio Fuels are subject to production mandates by Governments worldwide thus adding to the demand for crops.
- Finite supply of arable land due to urbanisation and industrialisation.
- Increase in income leads to an increase in protein based diets, particularly in developing nations like China and India.
- Decrease in world grain reserves (lowest in approx 45 years)
Our Off-take Agreement with IFFCO (Indian Farmers Fertiliser Co-op)
- India needs 70% more Phosphate in its soil than the global average.
- India is the largest importer of Phosphate and associated nutrients to make fertiliser in the world.
- IFFCO has 31% market share of Phosphate supply to India.
- IFFCO is a 9% equity owner of Legend and has 2 directors on our Board.
- IFFCO had choices globally, but chose to have a strategic relationship with Legend
Legend International Holdings: LGDI.OB