Geopolitical Disruptions and Supply Shocks Puts Agribusiness and Food into Focus

Geopolitical disruptions have made waves through the supply chain of various commodities used for agriculture. These disruptions have caused commodity prices to peak and, in turn, production to grow. The end-to-end higher prices have made a huge impact on the agribusiness industry pushing most of the industry’s stock prices higher in recent months.

With population growth expected to hit 10 billion by 2050 and farmable land scarcity increasing, the need for efficiency and agribusiness technological enhancements is growing now more than ever. The industry is already attempting to make their supply chain more efficient by leveraging alternative meat and dairy sources like plant-based meats and nut-based milks. With the demand of alternatives starkly increasing, efficient solutions to food production and alternative food products will be a factor in both the short and long term. Investors interested in tracking the growth in these themes can access MVIS^® Global Agribusiness Index (MVMOO) or MVIS^® Global Future of Food ESG Index (MVFOF).

MVIS^® Global Agribusiness Index, MVIS^® Global Future of Food ESG Index YTD Performance

Source: MarketVector Indexes^TM. Data as of August 8, 2022.

The MVIS^® Global Agribusiness Index (MVMOO) tracks the performance of the largest and most liquid companies in the global agribusiness segment. This is a modified market cap-weighted index, and only includes companies that generate at least 50% of their revenues from agri-chemicals and fertilisers, seeds and traits, farm/irrigation equipment and farm machinery, agricultural products (incl. Grain, tobacco, meat, poultry, and sugar), aquaculture and fishing, livestock, plantations, and trading of agricultural products. MVMOO covers at least 90% of the investable universe.

The MVIS^® Global Future of Food ESG Index (MVFOF) tracks the performance of the largest and most liquid companies offering products and services related to meat and dairy alternatives, organic foods, food flavors, or innovative agriculture technologies. MVFOF covers at least 90% of the investable universe and adheres to ESG criteria.

For more information on our family of indexes, click here.

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