Afirca’s emerging middle class presents a massive new marketplace for biotech companies such as Monsanto (MON, quote) and Syngenta (SYT, quote). The profit potential for these stocks has been detailed on previous articles on www.emergingmoney.com
According to a recent article in The Wall Street Journal by Matt Ridley, “Why Deny Biotech to a Hungry Africa,” the agriculture sector in the continent is lagging behind Asia and other parts of the world in productivity, particularly the utilization of genetically modified crops.
“Genetic modification has had a huge impact on agriculture worldwide,” Ridley says. “More than 15 million farmes now plant GM corps on almost 370 million acres, boost yields by 10% to 255. Yet, while much of North and South America, Australia and Asia are expanding the use of GM Crops, only three African nations have them — a further four are conducting trials.”
The need in Africa for products from MON, SYT and others is great. As Ridley points out in his Wall Street Journal piece, “Over the past five decades, while Asia yields have quadrupled, African yields have barely budged.”
As noted by John Kufor, the former president of Ghana, “Africa’s agriculture has been cut off from the scientific advances whihc have transformed yields in many other parts of the world.”
Now around $80, Monsanto (MON) shareholders have profited from these scientiic advances. Syngenta AG (SYT) is also up.