War in Ukraine - is it creating a global food crisis?
Investment Memo: MNB 2022
Macro Theme: Food Security
The Economist put out this video which looks at the impacts the Russia/Ukraine conflict is having on food supply chains globally.
Key takeaways from the Economist video:
- Odessa is the most important port in Ukraine with ~90% of Ukrainian exports going through Odessa and Mauripol. Farmers are worried about how they can get the crop out of the country and into export markets.
- ~80% of Egypt’s and ~70% of Congo’s grain comes from Russia/Ukraine. Globally ~800m people almost exclusively depend on Russia/Ukraine exports.
- Russia is a major energy and fertiliser exporter, but supply chain issues are resulting in cost escalations which will mean farmers are unable to produce as much as they would in the past and in turn crop yields will fall.
It’s clear that securing food supply chains is not something that is likely to be fixed in the next few weeks. The world needs to look to alternate countries to fill in the gaps that are emerging in food supply chains.
This is where our food security Investment Minbos Resources (ASX: MNB) fits in.
With its shovel ready phosphate (a key ingredient in producing the fertilisers) project in Angola our Investment is working towards a final Investment decision on its project, with the aim of having the project operational in 2023.
To see all of the key reasons we are Invested in MNB, what we want to see the company achieve in 2022, and the key risks to our Investment thesis, check out our 2022 MNB Investment Memo here.
