3 Stocks To Watch As Food Supply Chain Risks Hit Fertilizer And Feed Shares
War in the Middle East, higher oil and gas prices, and weather risks from El Niño are reshaping how food reaches supermarket shelves and how much you pay at the checkout. That mix creates both pressure and potential opportunity for investors watching agricultural inputs and food logistics stocks. This article walks through three stocks exposed to these currents and explains how the same news can set very different paths for each one.
The three stocks covered below are just a sample from this theme, and the full screen surfaced 23 more companies with equally detailed narratives around agricultural inputs and food supply-chain resilience that are not covered here. To go deeper on the idea and identify your own highest conviction angles, head straight to the Global Agricultural Inputs and Food Supply-Chain Enablers screener.
Saudi Basic Industries (SASE:2010)
Overview: Saudi Basic Industries is a large Saudi chemicals group that supplies petrochemicals, plastics and agri-nutrient fertilizers to global food and industrial supply chains.
Operations: The group generates about SAR 96.2b from petrochemicals and SAR 11.5b from agri-nutrients, with revenue spread across KSA, Asia, China, Europe, the Americas and Africa.
Market Cap: SAR 144.1b
Saudi Basic Industries plugs directly into the screener theme through its agri-nutrients arm. Its global petrochemicals network also provides exposure to packaging, plastics and logistics materials that keep food and fertilizer moving when supply routes are under strain.
"The company's ongoing transformation program, targeting an annual EBITDA impact of $3 billion by 2030 through cost excellence ($1.4B) and value creation ($1.6B), is expected to significantly enhance net margins and earnings as operational efficiency improves and underperforming assets are exited or optimized."
What really matters for investors is how one still unresolved pressure point shapes Saudi Basic Industries’ ability to turn that plan into lasting margin gains.
That pressure point is exactly where the full narrative for Saudi Basic Industries shows whether the EBITDA plan is accelerating a quality reset or just masking tougher structural trade offs for Saudi Basic Industries.
Asia-potash International Investment (Guangzhou)Co.Ltd (SZSE:000893)
Overview: Asia-potash International Investment (Guangzhou) Co. Ltd produces potash fertilizers and related logistics services that directly support global crop yields and food security.
Operations: The business generates about CN¥6.6b from potash fertilizer, with roughly CN¥5.6b from China and CN¥1.1b from overseas customers.
Market Cap: CN¥36.3b
Asia-potash International Investment (Guangzhou) Co. Ltd provides focused exposure to potash, a key nutrient when El Niño or conflict affects harvests. Reported earnings growth of 41.2% in the past year and a 32.7% net margin highlight the role of fertilizer demand, and performance will be influenced by how pricing dynamics and new capacity develop over time.
Those pricing swings and capacity choices are exactly what the analyst forecasts for Asia-potash International Investment (Guangzhou)Co.Ltd unpack so you can see whether earnings momentum is accelerating or at risk of stalling.
Aktieselskabet Schouw (CPSE:SCHO)
Overview: Aktieselskabet Schouw is a Danish industrial group whose BioMar unit supplies feed to global fish and shrimp farms, linking directly into aquaculture food production.
Operations: The group generates about DKK 16.5b from BioMar and DKK 8.7b from GPV, with smaller contributions from HydraSpecma, Fibertex units and Borg Automotive.
Market Cap: DKK 17.9b
Aktieselskabet Schouw gives you exposure to aquaculture feed, which sits inside a broader mix of industrial activities that help smooth earnings through different economic cycles.
"Ongoing expansion of BioMar's feed volumes, supported by long-term demand for healthy, protein-rich food sources and increasing aquaculture adoption, is expected by some market participants to support revenue and margin growth as global dietary trends shift and middle class consumption rises."
The real swing factor is how one unseen pressure on aquaculture feed profitability ultimately shapes whether those projected margin gains fully materialise.
That hidden profitability lever is exactly where the full narrative for Aktieselskabet Schouw shows whether aquaculture earnings are quietly accelerating or if rising input costs are already capping the upside.
Seeking Fresh Alternatives Before They Fly
New ideas move first. Prices follow. Identify potential breakout momentum and fresh themes while they are still under the radar. Consider your options carefully before making any decisions.
- Look for potential early leaders in smaller companies before momentum is fully recognized by the broader market with the curated 132 elite penny stocks with strong financials.
- Track structural shifts in healthcare and data by scanning the hand picked 132 healthcare AI stocks while these trends are still developing.
- Review potential infrastructure-related opportunities as electricity grids are upgraded in different regions by using the focused 40 power grid technology and infrastructure stocks.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com