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We made a fortune with Cresud – let’s double up on Latin American agriculture

Now is still a great time to plough your money into Latin American agriculture. James McKeigue explains why, and tips one stock set to profit.

I've spent the last weekend drinking the world's finest rum.

Not a bad way to spend the weekend.It was all research though I am in Guatemala, home of Zacapa: the best rum.

Of course, my job isn't that good. I'm not an international rum taster. I'm here writing a report on the Guatemalan economy. And, fortunately for me, one of Guatemala's major products is finely-distilled rum.

That's the point of today's article: Latin America is the 'Saudi Arabia of agriculture', and, with the world's population exploding, the canny investor can make some good money.

There's tasty profits to be had

We all know the world's population is growing exponentially, and therefore food demand will increase. The big question is: who will supply it?

According to the Inter-American Institute for Cooperation on Agriculture (IICA), Latin America has 42% of the world's agricultural spare capacity'.

Now I take exact' projections like this with a pinch of salt. But if you look at a world map, it's clear that this scenario is not far off. Latin America has less than 10% of the world's population, but almost 30% of the world's freshwater supply and 30% of the globe's spare farmland.

Like I said the Saudi Arabia of agriculture

Latin America is about to take off

There is a range of factors. To be honest, I could stretch this out into three articles but I will keep it short.

1. Europe

2. USA

3. Demographics

We've done well but there could be more to come

Cresud (Nasdaq: CRESY)

I first tipped the stock

However, when it comes to investing, the most important thing is price. Suffice to say, nowadays, Cresud is not the cheapest way to buy into Latin agriculture. Thankfully, I've found another great company that suits our purposes.

Let me introduce you to our new find, Brazilian agricultural company Brasilagro Companhia Brasileira de Propriedades Agrcolas (AGRO3.SA).

And luckily, right now, I believe we've got a great buying opportunity.

Why you should buy Latin America now

So now is a great time to invest in the Latin American agricultural sector.

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