I got here throughout an fascinating article discussing peak agricultural land. Not the phrases that we’re used to which observe “peak”. Peak inflation is a time period that’s accustomed to all of us. It is turning into the brand new “transitory inflation”.
Inflation rose 8.6% in May, the best degree since 1981. No peak inflation simply but. Surging meals, gasoline and power costs all contributed to this achieve. Food is what we’re fascinated about.
Finally, meals prices climbed one other 1.2% in May, bringing the year-over-year achieve to 10.1%.
Zerohedge had this picture which I do know is a bit tough to see. The dimension of the field represents every element’s contribution to meals and the colour of the field exhibits the month over month share change in worth. We have hovering prices in chickens, eggs, milk and cupcakes (noooo not cupcakes!).
Above are 12 months over 12 months numbers. Quite the rise in meats and poultry (14.20%), meals at residence (12.58%), nonalcoholic drinks (12.01%), dairy (11.85%), cereals and bakery (11.61%), full service meals and snacks (8.96%), fruit and veggies (8.19%) and even merchandising machine meals is up (8.02%)!
Some individuals are placing the inflationary and non inflationary puzzle items collectively. The Fed has performed some main fee hikes, but oil costs stay excessive. And how are fee hikes going to repair provide chain issues? Inflation shall be right here for some time as central banks want to discover a manner to kill demand, or enhance productiveness. It seems they’re aiming for a recession.
From peak inflation to peak agricultural land. The world has handed peak agricultural land after a millennia of agricultural growth, says ourworldindata.org.
Agricultural land is outlined as the overall of arable land that’s used to develop crops, and pasture used to elevate livestock. The chart above exhibits three totally different methodologies on how to measure international arable land. There are after all other ways to calculate this information as numerous farming land is commonly low density, blended in with rural villages, or in tiny smallholdings which are someplace between a backyard and a farm.
There might be disagreements on how to measure arable land, however all the information agrees on one level: we’ve handed the peak. A vital and historic second within the historical past of humanity…and our relationship with the plant and ecosystem!
The takeaway in accordance to ourworldindata?
It exhibits that the way forward for meals manufacturing doesn’t want to observe the damaging path that it did previously. If we proceed on this path we shall be ready to restore area for the planet’s wildlands and wildlife.
The excellent news is that despite the fact that we’ve peaked in agricultural land, the world continues to produce extra meals. A decoupling has already begun with agricultural land and meals manufacturing.
Global agricultural land – the inexperienced line – has peaked whereas agricultural manufacturing – the brown line – has continued to enhance strongly, even after this peak.
What this tells us is that feeding a bigger inhabitants doesn’t imply taking habitat manner from different wildlife and destroying the ecosystem. We can produce extra meals and provides land again to nature.
You all know my love for indoor and vertical built-in farming. As climate turns into unpredictable and impacts outside farms, we’ll see a shift to indoor and vertical built-in farming. Vertical built-in farming means extra meals and fewer land. Outdoor farmland has to be in areas that obtain numerous solar and wind. Going indoors means these lands can be utilized for photo voltaic panels and wind generators.
Yes lots of people are speaking about meals shortages and such, however I imagine there shall be mild on the finish of the tunnel when it comes to meals manufacturing. Indoor farming and vertical built-in farming will permit us to present sufficient meals for everybody. There shall be some shakiness for the transition, however we’ll come by. This is why I stay a bull when it comes to investing on this expertise.
And now, right here’s what occurred to sure agriculture shares this week:
CubicFarms (CUB.TO)
Speaking about indoor farming, hey CubicFarms followers! Stay tuned as we’ve an thrilling video with them popping out quickly on Equity Guru!
This week noticed CubicFarms announce a $3.8 million Hydrogreen sale. A ten-machine Automated Vertical Pastures is being offered and put in on the Cnossen dairy farm positioned in Heresford, West Texas. CubicFarms Hydrogreen division will set up this machine to develop year-round, constant nutritious contemporary forage for the Cnossen Dairy, offering a dependable supply of contemporary forage through the drought circumstances throughout the western United States.
“We’ve endured extreme peaks and valleys of inconsistent feed during one of the driest periods on record and needed a simple to use, innovative fresh feed technology to survive these water shortages,” stated Jim Cnossen. “After evaluating numerous on-farm indoor growing technologies, HydroGreen emerged as the leading solution to reliably produce the high-quality feed necessary for optimal herd health and performance.”
“Vertical farming is going to be important for all dairies raising their own feed, regardless of drought conditions, and the HydroGreen product benefits are unique in the industry,” stated Bill Dyer, Chief Executive Officer, Dairy Specialists. “Adding HydroGreen fresh forage to the ration improves feed intake with better digestibility, sugars make it more soluble, and transition cows can increase milk production. We’re pleased to support innovative ag-tech like HydroGreen to meet the land and water savings needed by the farmers who put their trust in us.”
The inventory has not had an amazing 2022. The broader inventory market dump doesn’t assist too, however I actually imagine we’re at worth level. From a technical perspective, the inventory is lastly exhibiting indicators of bottoming. We are creating a spread slightly than making a brand new low day after day. This is indicating that promoting strain is exhausting.
We can now start to search for indicators of a reversal. A variety is a begin, however there are a couple of extra issues I would really like to see. Firstly, it will assist if we break and shut above $0.50. 50 cents is a vital psychological zone, and we are able to then use this worth degree as help for a brand new transfer greater.
I would really like to then see a climb again above $0.625 which is an important resistance zone. You will see this when you zoom out in your chart. This wouldn’t simply reclaim what was earlier help, however would additionally see worth cross again throughout my shifting common. A cross which shall be warmly welcomed by buyers and merchants as we’ve not seen worth above the shifting common since March of this 12 months. A cross over, particularly after a protracted downtrend, is a superb indication that the inventory is reversing. Once all this occurs, we are able to make a pleasant run up to $1.00.
Water Ways Technologies (WWT.V)
Two press releases this week from Water Ways Technologies.
First, one other supply. Water Ways acquired a brand new buy order to set up a 50 Hectares good turnkey irrigation undertaking of greens, primarily inexperienced peas, in Ethiopia. The undertaking is predicted to be delivered and put in throughout Q3 of 2022. The whole worth of the order is roughly C$400,000. The order is a repeat order from an current Ethiopian consumer. Revenues are to be acknowledged from the consumer in Q3 2022.
Second, Water Ways subsidiary, Irri-Al-Tal Ltd, signed a illustration and distribution settlement within the nation of Georgia. According to the settlement the Georgian firm will obtain unique proper to promote Water Ways’ merchandise and initiatives in Georgia and can promote the model “WWT Georgia”.
Ohad Haber, Chairman and Chief Executive Officer, commented: “We are expanding our business and brand to other countries in Asia following our success in Uzbekistan. After the Covid supply crisis many governments in the region are supporting local agriculture and we will market our smart irrigation technology as part of these efforts in Georgia.”
Not one of the best wanting chart. Water Ways peaked out earlier this 12 months and started to tumble. We broke main help ranges and an uptrend line. The downtrend remains to be intact. The excellent news is that we’re approaching a help zone which may see patrons leap in. On June 14th, we noticed a pleasant lengthy wick candle indicating patrons stepping in at help at $0.16. We know there are patrons right here, the query now turns into whether or not there shall be extra patrons than sellers. Can we start to reverse right here?
Right now, it’s like catching a falling knife. I don’t enter like that. I’d await for indicators of promoting exhaustion. Hopefully we see a couple of days of vary at help right here, or if we break, decrease at $0.10. The latter worth level seems like a really low cost worth level for this inventory.
TrustBIX Inc (TBIX.V)
Big information out from TrustBIX Inc. The firm introduced the discharge of the BIX Origin module, an innovation in lots of industries supporting provenance, chain of custody, and ESG reporting. This new module will additional the Company’s initiative to reward the agri-food and waste industries for his or her sustainable efforts, and to provide key insights and verifiable information to taking part organizations and finish shoppers.
BIX Origin is a SaaS traceability answer that gives verifiable information at each step of the availability chain, verifying supply, model claims, and practices with uniquely generated QR codes which are branded to match taking part organizations. Producers and processors in a number of agri-food and bio-industrial industries, together with cereal crops, pulse crops, animal protein, carbon and biochar, may use BIX Origin to present assurance to additional processors, buyers, retailers and shoppers on the origin of their merchandise.
“BIX Origin enables organizations to manage and source their inventory while validating certified product claims, practices, and qualified program participation.” Said Hubert Lau, CEO of TrustBIX Inc. “The release of BIX Origin will further assist TrustBIX in its initiative to reward the Agri-foods industry for their sustainable efforts.”
The inventory has seen some bigger than common quantity, however the inventory is wanting weak. New lows for 2022. I’d be expecting some kind of vary at these lows. A cross again above $0.09 after which the foremost resistance at $0.13 would get me excited.
Avivagen (VIV.V)
Avivagen launched Q2 earnings this week. Here are the outcomes:
The Company reported internet revenues of $88,438 (in contrast to $159,614 within the quarter ending April 30, 2021) and a complete lack of $(1,303,677) for the quarter ending April 30, 2022. This compares to a complete loss within the quarter ending April 30, 2021, of $(2,197,649). As at April 30, 2022, the Company reported whole belongings of $3,013,537 (present belongings of $2,878,566), whole liabilities of $6,907,179, and shareholders’ deficit of ($3,893,642).
The inventory is in a spread, however close to the underside of the vary. Avivagen has held up properly and all the time sees patrons stepping in each time we examined this help in current months. Can we do it once more? I’d be expecting a robust inexperienced candle shut which might set us up for a transfer again to $0.25.
RiceBran Technologies (RIBT)
RiceBran applied sciences introduced that the corporate is pursuing upcycle certification from the Upcycled Food Association.
The UFA Upcycled Certified™ Program is the world’s first third-party certification program for upcycled meals substances and merchandise. The flagship of the Program is the on-package mark, which helps retailers function upcycled merchandise on shelf, and signifies to shoppers which merchandise are Upcycled Certified™, offering the chance to stop meals waste with each buy. The mark highlights upcycled substances and merchandise procured and produced with surplus meals or meals by-products from manufacturing, that use verifiable provide chains and have a constructive influence on the surroundings
RiceBran’s Stabilized Rice Bran (SRB) has all the time been an upcycled product. RiceBran’s proprietary processes protect the nutritive worth of rice bran in a stabilized format by giving it a enough shelf-life to make it a compelling ingredient to substitute soy, corn, and wheat options throughout a variety of purposes for human and animal consumption.
“Upcycle certification is an important step for RiceBran to gain traction with impact-focused consumers, demonstrating that not only is our stabilized rice bran a healthy, hypoallergenic, non-GMO alternative, but an ingredient that materially reduces food waste,” stated RiceBran Chairman Peter Bradley. “Without our proprietary processes, rice bran would be little more than animal feed, with a significant portion wasted. By taking this waste and turning it into wellness, we provide significant added value to the entire supply chain, from farmers to retailers, creating a regionally sourced, healthy option where one did not previously exist.”
This is an organization I’ve been writing about rather a lot just lately on Equity Guru. The inventory has been fairly unstable. However, the uptrend stays. Unfortunately, we did find yourself closing beneath $0.75, however are nonetheless holding above the vital $0.65 help space. Now we’re testing help and the uptrend line. A great spot for patrons to leap in.
If we do shut beneath $0.65, then the uptrend is minimize brief, and I would want to wait and assess the value motion afterwards.
In elementary information, CNBC put out a bit concerning greater rice costs. Rice costs are up for the fifth straight month and have made a 12 month excessive. Something like this does assist buoy the curiosity in RiceBran Technologies.