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Fodder King - Invest in a Sustainable Industry for the Long-term

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Investors looking for long-term sustainable growth potential should ask for a copy of Fodder King’s current prospectus. Historically agribusinesses have had a low correlation to financial market volatility – which one would have to regard as a plus during the present financial turmoil.   

The giant catering problem

Food is becoming a major issue for many countries because world demand is doubling roughly every twenty-five to thirty years, as population grows unabated.  But the agricultural resources required to produce more food, and more animal feed, are shrinking due to: population pressure; urbanisation; pollution; degradation of fertile land and fresh water resources; desertification; the development of bio-fuels; and the advent of climate change.  So our globe needs to produce more food from diminishing land and water resources.  Adding to the challenge, rising affluence in developing countries is increasing demand for more nutritious food – with higher levels of protein and energy.  This means more milk, eggs, meat or fish need to be produced from less land and more quality fodder will be required.  Thus, increasing population, rising affluence, shrinking land and water resources all translate to solid demand growth for quality fodder.  

Help "drought-proof" the bush and boost exports by $3 billion per year

A reliable fodder supply could lessen the impact of drought on Australian exports of livestock products, (such as wool, milk, eggs, meat, hides, tallow) and processed goods reliant on those products, by about $2 - 3 billion per annum - according to data from ‘Australian Food Statistics’ since 2001/02.  It would give Australia’s livestock industries the potential to gain weight during poor seasons like those in the USA and Europe, where livestock are regularly fed and housed during winter.  We could match the USA scale by increasing fodder production 25 times to equal the 150 million tonnes of USA hay produced each year.   

Food security can be improved

Fodder King have devised a unique way to mass-produce consistent-quality fodder.  They can harvest almost around the clock instead of being restricted, as is traditional, to a couple of hours per day when atmospheric moisture conditions are just right – growing irrigated lucerne for hay on a broad-acre scale previously thought impractical. This breakthrough from the cottage industry scale at which fodder is still produced, with erratic quality, means our service and quality oriented business can mass-produce and distribute quality fodder to meet increased demand from domestic and export markets.  

Fodder is a Good Agribusiness Investment Vehicle

Fodder is a good agribusiness investment vehicle supplying a wide range of livestock: alpacas, beef cattle, chickens, dairy cattle, deer, emus, goats, horses, ostriches, pigs, sheep and zoo animals and also reaches beyond to gardening, landscaping and construction.  Thus an investment in Fodder King is hedged across many segments of the economy – just what financial analysts look for to build a balanced investment portfolio.   

Tackling environmental problems makes a socially responsible investment Fodder King’s environmentally sustainable venture is making a significant contribution to society - helping mitigate the effects of drought, reduce salinity, improve soil and water quality, reduce land degradation and greenhouse gases and enhance food safety.  This is why Fodder King is considered a socially responsible investment. 

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