How to invest in food safely and profitably

There are many ways of investing in food.  Food is something that everyone needs, but from an investor’s viewpoint, investing in food is rather risky.

These are the new ways of investing in food:

1.       Land

You buy the land, and you lease out to farmers to farm the land.  The risk is that when a natural disaster happens, the farmers have no money to pay you.

2.       Supermarket

You can invest in supermarket because the bulk of their income comes from buying and selling food.

3.       Farms

You can invest in all types of farms, such as fish farm, oyster farm, vegetables farm, chicken farms and other farms.

I think this is the riskiest of all.  It involves a great deal of upfront money too.

The banks will not lend you the money to set up a fish farm, and when you face with fish diseases or bad weather, all your fishes will die.

I think a more important question is how to invest in food safely and profitably.

After sleeping on the question of how to invest in food, I finally find a very good way.

Instead of investing in land, in farmers, or in supermarket, I figure that the least risk method is to invest in companies making fertilizer.

The companies making fertilizer will make money regardless of what the farmers are currently farming.

They make money before the drought or flood destroys the crops.

Many companies are listed in the stock exchange. 

Even though those companies are not selling the fertilizer in my country, they are still listed in the stock exchange in my country.

I find that they are very consistent in giving out dividends too.

While there is a risk of fire or explosion since they are dealing with chemicals, that is very rare.  I have not heard of any fertilizer factories getting burnt due to chemicals triggering the fire.

 (image credit to Pixabay)