Dear Fellow Investor,
Happy Thanksgiving! I know I'm a few days early, but with the markets being closed for the holiday on Thursday I wanted to make sure that we got a chance to speak before the hubbub of family and turkey took over.
This year, as we sit down to enjoy a tasty meal with friends and family I'd like for you to take a moment to think about all that went into preparing such a meal—starting with the rural farmers who planted and harvested the vegetables.
A Change in Fortune, a Change in Diet
As we've talked about numerous times, the Chinese economy is booming, but one of the results of this growth is a change in diet. In China, the rising middle-class is calling for both higher quantities and a better quality of food. This is no easy task for any country. With industrialization and urban sprawl taking over, Chinese farmers are continually asked to produce more crops from shrinking amounts of land. They also have fewer farm workers as many have left villages to seek their fortune in more established cities. If you add environmental pressures to the mix, you've got an agricultural situation that's even more challenging.
Lucky for us there's a way for farmers to get a leg up on increasing demand and diminishing resources and a way for us to profit. One of the best ways to increase crop output without having to install expensive equipment is to use fertilizer. Our newest China Strategy recommendation is a fertilizing company that's the best of its breed. Click here to get immediate details on this company as well as my recommended buy limit.
China's Fertile Demand for Fertilizer
It's estimated that one out of every three dollars earned in China is spent on food. Why? Because the dietary habits of Chinese are changing. People are switching from starch-based diets (rich in grains and vegetables) to protein-rich diets (which contain more meat). This is a natural shift that many countries experience when moving through the various stages of economic development.
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This shift is best illustrated by the rising meat consumption in China. Meat consumption there has tripled over the last two decades and continues to grow at 4%–5% per year. As a result, farmers must produce increasing amounts of grain to feed livestock. That's where our company comes in—in order to grow these grains, farmers can't rely on ground nutrients alone; they need fertilizer. Click here to become a member of China Strategy today and learn how you can get in on the profits.
With 850 million farmers challenged to feed over 1.3 billion people, China consumes more fertilizer than any other country. Making things complicated is the fact that much of western China is unusable for crop production because of barren land that's too remote because of a lack of suitable transportation and infrastructure. As a result, southeastern China is the main home to much of the country's agriculture. Farmers in this region often double- and triple-crop their land in order to produce more rice, fruits and vegetables—all of which depend on fertilizer to grow.
Fertilizer isn't just used to grow food crops—it's also used to grow products for other industries. The push for developing eco-friendly biofuels in China is huge right now. Given that biofuels are mainly made from natural plant-based sources like corn, soybeans and sugarcane, these plants require farmers to buy even more fertilizer.
As you can see, increasing demand for food, animal feed and biofuels is providing a very positive outlook for the fertilizer industry. I expect China's fertilizer demand to grow by 15% to 20% per year over the next five years. The spike in Chinese fertilizer demand combined with the country's limited land resources will help propel fertilizer companies like we own in China Strategy to new levels of performance and growth.
Our China Strategy company is the world's largest fertilizer producer, and it's benefiting from two key trends right now: 1) China's increasing demand for fertilizers, and 2) a high barrier of entry into the fertilizer business. With 22% of the world's overall potash capacity and 75% of its excess capacity, this company will play an essential role in global agriculture for years to come.
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A Lot of Mouths to Feed
If you agree with me and think that the fertilizer industry has a strong tailwind and a bright future fueled by higher demand from emerging countries and alternative energy, then you'll want even more exposure to this industry. Join me at Asia Edge and I'll introduce you to another company that is benefiting from the same forces. This company is pounding ahead (Asia Edge readers are already up 88% in the last five months) and there's more to come for this fertilizer magnate. Don't wait! Get in on this global need to feed and join Asia Edge today! |
Solid Growth Ahead
With the world's population continuing to rise, the demand for alternative fuel becoming more pressing and China's incredible growth, I don't see any end to the demand for fertilizer or for the opportunities for smart investors. Click here to learn more, and you'll get instant access to the name of our fertilizer company.
P.S. I expect this strong agricultural market to last a few years, but timing is of the essence. Our fertilizer play almost doubled its gross margin while sales rose 40% in the first half of this year alone! To top it off, its earning soared 61% in the last 12 months. It's not too late to get in on the profits – join China Strategy today!
