Geopolitical Disruptions And Supply Shocks Puts Agribusiness And Food Into Focus

August 2022      
By Alex Butler, Business Development Associate

Geopolitical disruptions have made waves through the supply chain of various commodities used for agriculture.  These disruptions have caused commodity prices to peak and, in turn, production to grow.  The end-to-end higher prices have made a huge impact on the agribusiness industry pushing most of the industry’s stock prices higher in recent months. 

With population growth expected to hit 10 billion by 2050 and farmable land scarcity increasing, the need for efficiency and agribusiness technological enhancements is growing now more than ever.  The industry is already attempting to make their supply chain more efficient by leveraging alternative meat and dairy sources like plant-based meats and nut-based milks.  With the demand of alternatives starkly increasing, efficient solutions to food production and alternative food products will be a factor in both the short and long term. Investors interested in tracking the growth in these themes can access MVIS® Global Agribusiness Index (MVMOO) or MVIS® Global Future of Food ESG Index (MVFOF).

MVIS® Global Agribusiness Index, MVIS® Global Future of Food ESG Index YTD Performance

Source: MarketVector IndexesTM. Data as of August 8, 2022.

The MVIS® Global Agribusiness Index (MVMOO) tracks the performance of the largest and most liquid companies in the global agribusiness segment. This is a modified market cap-weighted index, and only includes companies that generate at least 50% of their revenues from agri-chemicals and fertilisers, seeds and traits, farm/irrigation equipment and farm machinery, agricultural products (incl. Grain, tobacco, meat, poultry, and sugar), aquaculture and fishing, livestock, plantations, and trading of agricultural products. MVMOO covers at least 90% of the investable universe.

The MVIS® Global Future of Food ESG Index (MVFOF) tracks the performance of the largest and most liquid companies offering products and services related to meat and dairy alternatives, organic foods, food flavors, or innovative agriculture technologies. MVFOF covers at least 90% of the investable universe and adheres to ESG criteria.

For more information on our family of indexes, click here

 

About the Author:

Alex Butler is a Business Development Associate at MarketVector Indexes GmbH. At MarketVector IndexesTM, Alex works closely with the business teams and clients to help tailor indexes and index data to meet client needs. Prior to joining MarketVector IndexesTM, Alex led the Americas Business Development team at S&P Global (Formerly IHS Markit, Markit) for ETF and Index Management. Alex is a product expert for ETF and index data. Alex studied at Elon University with a BA in Economics along with a focus on Information Science.

 

For informational and advertising purposes only. The views and opinions expressed are those of the authors but not necessarily those of MarketVector Indexes GmbH. Opinions are current as of the publication date and are subject to change with market conditions. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results. It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments based on that index. MarketVector Indexes GmbH does not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. Inclusion of a security within an index is not a recommendation by MarketVector Indexes GmbH to buy, sell, or hold such security, nor is it considered to be investment advice.

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