Share tips: A cheap way into the food supercycle

With the world's population rapidly expanding, demand for food will increase. That's good news for this food producer, says Paul Hill.

As the world's population balloons from seven billion today to nine billion by 2050, demand for food, ingredientsfor livestock feed, biofuels and environmentally friendly alternatives to traditional chemicals will grow. And with America, Britain, Europe and Japan using aggressive monetary policies to reignite their lacklustre economies, the supply of money is expanding much faster than food production.

So what's the best way to cash in on this theme? One way of getting cheap exposure to the food supercycle is via Archer Daniels Midland (ADM). It procures, transports, stores, mills and markets a wide range of softs' and is one of the world's largest processors of oilseeds, corn, wheat, biofuels and cocoa. Its operations circle the planet, from America to South America and Asia.

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.