Hugh Hendry appeared on BBC this week headlining an interesting discussion about Western vs. Eastern Agriculture and Potash and shared these thoughts:
"The Chinese and the Canadians hate each other, here. There's been a profound game of roulette. Chinese consumption of Potash is 35% less than we use in Western agriculture. The Chinese were very aggrieved when they saw the chart with potash at $1000 per ton.They stopped; they haven't been consuming in the manner they should and they risk an absolute collapse in their yields."
"Again, we made this point, that for thirty years, the price of agriculture has collapsed, its fallen 90% in real terms, so we haven't invested in the sector."
"As a world society, we're now acutely vulnerable in the business of feeding ourselves. We haven't spent enough, and we haven't organized the production of agriculture in a manner which is appropriate."
By the way, Congratulations to Hugh Hendry on being awarded Global Macro-Hedge Fund Manager YTD, according to Bloomberg.
