20. January 2020 | 11:02 CET
iWater Group, Nutrien, Mosaic - agriculture in transition
Last weekend thousands of farmers, climate and environmental activists protested for a change in German and European agricultural policy. Participants in the demonstrations appealed to the German government and at the same time called on it to do more for small farms, fair animal husbandry and less antibiotics and pesticides.
time to read:
ISIN: CA67077M1086 , US61945C1036
Organic farming or cheap products
The participants of the demonstration have a common interest in the fact that animals and the environment must be the focus of a sustainable agricultural policy. There is criticism that the agricultural industry is forced to supply cheap raw materials for the food industry.
This approach is increasingly becoming a burden for farmers, animals and the environment. Food at dumping prices has, among other things, led to the fact that in Germany since 2005 some 130,000 small farms have closed down.
Subsidy for sustainable agriculture
EU agricultural policy currently promotes production areas and yields with subsidies, which according to participants are not targeted incentives and as a cause contribute to development in the wrong direction. Germany will take over the EU presidency in the second half of this year and in regards to that the demonstrators demand that in future subsidies for agriculture should be based on animal welfare and climate protection criteria.
From a global perspective, however, Europe is also facing the challenges of, for example, cheap meat being imported and crowding out domestic producers in the competition.
Flexibility in the range of products offered by suppliers
Due to the fact that the farmers in Germany have been pointing out their displeasure with demonstrations for some time now, it can be assumed that sooner or later there will be changes on the political level.
In changes lies also the chance for new suppliers, like the iWater Group, which contributes with its products to environmentally friendly water purification. The company's products are used to reduce the use of antibiotics in animal husbandry and pesticides in agriculture. Changes in the demand for fertilizers may occur with major producers such as Nutrients (TSX: NTR) and Mosaic (NYSE: MOS).