The past few months have been a stark reminder of how much of an affect mother nature can have on food production around the globe. Record droughts in California and similar shortages in Brazil have led to spikes in the price of many crops around the world. On top of higher prices, predictions for falling crop yields and rising demand in coming decades will put many countries under pressure to feed a growing population.
Regardless of your opinion on GMOs, drought tolerant seeds from companies like DuPont (NYSE:DD), Monsanto (NYSE:MON) and Syngenta (NYSE:SYT) will be a necessary "evil" as time rolls on. All three have proved that drought tolerant corn seeds can produce equal or greater yields than traditional seeds in times of normal rainfall and far higher yields when mother nature fails to comply with crop needs.
This segment is from Tuesday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy & materials sectors @TMFEnergy.