All-in podcast highlights food shortage risks
The latest episode of one of our favourite podcasts dropped over the weekend (All-in podcast E72: Impact of sanctions, deglobalization, food shortage risks, macroeconomic outlook and more).
Discussed from ~15:21 onwards is how the sanctions on Russia and disruption to the global agricultural supply chain is placing the world at risk of food shortages in the coming years.
The key takeaway was the heightened risks to the food supply chains. And as investors in MNB, we found the podcast particularly interesting.
Scientist and investor David Friedberg lays out the three types of fertiliser needed to grow the world’s food and how supply chains for all three are being impacted by geopolitical tensions/sanctions. The three types of fertiliser are:
- Nitrogen fertiliser (Ammonia based) - MNB are working on this.
- Phosphorus fertiliser - MNB are working on this.
- Potassium fertiliser
He also touches on how the prices of all three of these have shot up in recent months with Russia being a key supplier and placing restrictions on exports to the rest of the world as it tries to safeguard its food supplies.
What really stood out to us was Friedberg’s take on the price of nitrogen fertilisers. He mentioned that with almost all of the world’s nitrogen fertilisers being produced using natural gas, and the price of gas now almost double where it was last year, the costs of these nitrogen based fertilisers have become out of reach for some farmers.
This is why we are invested in MNB. Its phosphate fertiliser project is nearing development and it has plans to build a hydro-powered ammonia plant to produce zero carbon ammonia (used to produce nitrogen fertiliser).
Angola has the world’s second cheapest source of energy so our investment MNB is perfectly positioned to establish alternative sources of supply when the world most desperately needs it.
To see all of the reasons why we invested in MNB, and what we want the company to achieve in 2022, check out our 2022 Investment Memo here.
