From Morningstar: 2024-04-15 10:36:00

The agri-food sector faces a critical challenge: Crop yields must increase by 50% in the next 30 years to feed the growing global population, as Morningstar’s 2023 report reveals. The Morningstar Global Food Innovation Index, focused on companies improving food production and safety, has seen a 4.9% gain this year after a sluggish 2022-2023.

Africa and the Middle East are most in need of increased food production due to shortages and population growth. Morningstar’s analysis highlights technology solutions like precision agriculture and sustainable packaging as key investment opportunities. The European Investment Bank predicts a pressing need for innovation in the agriculture sector due to limited natural resources.

Investment opportunities in agriculture include precision agriculture, sustainable packaging, and blockchain-based traceability. Companies developing technologies like automated farming stand to benefit from the growing demand for sustainable crops. Morningstar lists fifteen funds and ETFs in Europe focused on the agriculture sector equity category.

The Pictet – Nutrition P fund, launched in 2007, is the largest in its category and invests across the food chain with a 6.1% Q1 net return. iShares Agribusiness UCITS ETF aims to replicate the performance of the S&P Commodity Producers Agribusiness Index, boasting a 5.2% Q1 net return and a Silver Medalist Rating. Rize Sustainable Future of Food UCITS ETF targets companies innovating across the food value chain and has a 3.8% Q1 net return.

The VanEck Sustainable Future of Food UCITS ETF, launched in June 2022, offers exposure to a concentrated portfolio of 35 companies involved in high-precision agriculture and alternative proteins. The ETF does not have a Star Rating yet but holds a Bronze Medalist Rating. Investment opportunities abound in the agriculture sector for those looking for sustainable growth.



Read more at Morningstar: 4 Funds And ETFs for Investing in Agriculture