Allana Potash Corp announced on Tuesday that it has intersected three zones of strong potash mineralization in hole DK-11-28, found in the northwestern region of the company’s potash concession in Ethiopia.
Allana is encouraged by the consistently strong potash mineralization seen in the results from the northwestern part of its concession according to Farhad Abasov President and CEO…READ MORE.
My Take: I highlight Allan Potash on this site for a number of reasons. For one, it’s a small cap stock with a lot of opportunity to grow in the coming years, but another reason pertains to illustrating global trends and opportunities.
Allan’s potash (fertilizer) rich property is in Ethiopia. Ethiopia is part of Africa, which in the coming decades will boast some of the highest fertility rates in the world (Asia and South America are declining.). In terms of population growth, hungry mouths are one area that do not benefit from economies of scale. Nothing miraculous happens when you have a larger population in terms of food needs.
Based on demographic growth alone, Africa should expect to have greater demand for higher crop yields as more consumers appear on the continent. In addition, if other developing countries increase their standard of living, they will demand more food, while they experience an increase in energy consumption. These two factors could make the importing of various foods more expensive for residents of Africa. Thus, extra pressure would fall on Africa’s domestic growers to produce more with the farm-able land they have.
As an investor that is focused on the long-term, it is very important to understand long range trends and how companies of today are positioned to meet the needs of these trends. Keep this information in mind when considering potential investments.