India bans wheat exports, food security now a global issue

Investment Memo: MNB 2022

Macro Theme: Global Food Security

Over the weekend Bloomberg reported that India had banned wheat exports. Here are our key takeaways from the article and how it relates to our food security Investment Minbos Resources (ASX: MNB):

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Key takeaways:

• The Russia/Ukraine war has meant that logistics in the Black Sea region (Which accounts for ~ ¼ of all wheat trade) has been disrupted, India was expected to step in and fill in this gap.
• The Indian government has stated that national food security is priority number one.
• The German government also commented on the export ban with the agricultural minister saying “If we all started imposing these export limits, or even closed down markets, that just makes the crisis worse”.

All of this means that the world needs to invest in food security projects ranging from fertiliser to direct agriculture all around the world in different locations. This is where MNB fits in.