When the chief executive of the world’s largest food company talks about the future of agriculture, it pays to listen. In case you missed it, Nestle (PINK:NSRGY) CEO Paul Bulcke spoke to Bloomberg TV earlier this week, and he put a positive spin on the trend toward rising prices for agricultural products.
An article on the Bloomberg Businessweek site quotes Bulcke saying, “Prices are getting to a level that may result in an effect that is positive for food production. People are motivated again to be in agriculture.”
Boosting agricultural output could easily prove to be one of biggest necessities for the global economy in coming years. The article also quotes Bulcke saying, “We’re going to have a world that is going to have 2 to 3 billion more people in the next few years.” And it goes on to cite the U.N.’s Food & Agriculture Organization’s contention that “Global food output must rise 70 percent by 2050 as the world population grows to 9.3 billion from 7 billion, and wealthier consumers eat more meat.”
The ever-growing world population’s need to feed itself puts Nestle and its big global rivals like Unilever (NYSE:UL) , Kraft (NYSE:KFT), General Mills (NYSE:GIS) and Campbell Soup (NYSE:CPB) in the enviable position of catering to a steadily expanding market. And if Bulcke’s prediction of a rise in agricultural output holds up, these giants may be able to feed the world without making their customers go broke. Wouldn’t that be nice?