Thursday, October 20, 2011

George Soros, Jim Rogers love Agriculture, Investors should be Sweet on Stevia ... - SmallCap Network


As reported in previous articles on www.smallcapnetwork.com, earlier this year, legendary investor George Soros became the largest shareholder of Adecoagra, a Brazilian agriculture concern.  Soros owns more than 27 million shares, which represents an investment of close to $400 million.  This was detailed in a prevous article on www.smallcapnetwork.com.

Billionaire investor Jim Rogers, Soros' former partner at the hugely successful Quantum Fund, is very bullish on the agriculture sector.  With the global population headed towards 9 billion, he sees agriculture as the growth sector of the future.  He has been buying farmland in Brazil and Canada.  In a recent interview, Rogers declared that, "If it is an agriculture product, I am going to say buy it!"  This topic was reviewed extensively in a previous article on www.smallcapnetwork.com, too.

Savvy investors now have that opportunity at the early, potentially explosive stages with Stevia Corp.  This is when the opportunties for profits are also the greatest.  Stevia Corp makes sweeteners and is based in Indianapolis, Indiana.  The company grows the Stevia Leaf in Vietnam and Indonesia, which have optimal growing conditions for the plant.  Mintel, a market research group, expects the sales of Stevia sweetened products to be in excess of $2 billion in 2011.

The market for Stevia products is huge and will only expand.  All natural Stevia is projected to replace 20 percent of the current $50 billion market in the world for sweetners.  The entire sweetner market now is estimated at $80 billion and is broken into three segments: sugar, which compromises 82 percent; high fructose corn syrup at 9 percent; and high intensity sweetners, the remaining 9 percent.

Stevia has a number of advantages of each.  It does not do the damage to the environment that sugar does, particularly in polluting the water and atmosphere.  Corn prices have been driven higher around the globe due to ehanol demands.  And high intensity sweetners such as aspartame have undesirable side effects.  Sugar, corn and artificial sweetners have a gloomy outlook while Stevia has centuries of tradition behind it.  Moreover, as the global population grows and becomes more affluent, products like Stevia will be more in demand as diets evolve.


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Jim Rogers

Warren Buffett

Nouriel Roubini