The world’s food system is undergoing a major transformation due to the impact of climate change and technological innovation. According to PGIM’s thematic research head Shehriyar Antia, demand for food is rising due to increasing affluence, leading people in frontier and emerging markets to consume more meat, dairy, wheats, oils, and sugars. Converging diets are driving longer supply chains and the need for refrigerated frozen storage facilities and transportation. Investors can take advantage of this trend by investing in real estate, or the debt or equity of cold logistics companies like Nichirei and Frialsa. Antia also suggested smart applied technology investments such as precision agriculture and crop science to mitigate the damaging effects of climate change. John Deere, CNH Industrial, and Kubota are leading companies manufacturing sophisticated machines for large-scale farms. According to Antia, it’s crucial for investors to focus on the changes that are happening in the world’s food system as it provides a great opportunity.
PGIM is a global investment management firm with approximately $1.27 trillion in assets under management. The company offers a range of investment solutions to investors, including equities, fixed income, private equity and alternatives.
Shehriyar Antia is the head of thematic research at PGIM. His job is to focus on investing in themes that will have a significant impact on the world in the next five to ten years. Antia emphasizes the importance of investing in enduring secular trends that offer massive long-term gains instead of just short-term economic cycles. He identifies opportunities for investors that are driven by the transformation of sectors like the world’s food system.
