Jim Rogers: Food Catastrophe Looming Some Parts of the World Will Starve

Legendary global investor and chairman of Singapore-based Rogers Holdings, Jim Rogers said the lack of supply in agricultural products is especially concerning.

This cycle may last for many years as no one is bringing new supply on stream, Rogers said.

In a Yahoo Finance video clip Rogers explains the reasons he is bullish on agricultural commodities. As he sees it, "most agricultural products are still depressed on a historic basis."

"The story is not over, not for a while," he said.

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"I don’t see any reason it’s going to be over for a few years because no one is bringing new supply on stream."

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"A catastrophe is looming," he says. "The world is going to have a period when we cannot get food at any price in some parts of the world.”

Rogers on Rice and Cotton

Rogers believes rice and cotton prices are likely to soar in the coming decade as prices of agricultural commodities boom because of declining inventories and production disruptions.

“If we start having problems, weather problems, production problems, the price of rice is going to skyrocket over the next decade,” said in a Bloomberg interview.

"When it happens I don’t know. But I know that the fundamentals are ripe," he added.

Agriculture production needs to expand by 70% through 2050, as the global population rises to 9.1 billion from 6.7 billion, Jacques Diouf, director-general at the United Nations Food and Agriculture Organization, said October 12.

World food production will face increasing competition from the biofuel market “which has the potential to change the fundamentals of agricultural market systems,” with production set to climb by almost 90% over the next 10 years to reach 192 billion liters by 2018, said Diouf.

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