The worst drought experienced in the US since 1936, combined with similar water shortages in Russia and South America, is expected to push global food prices to all-time highs in 2013. Analysts for Rabobank estimate that by June 2013, the basket of food prices tracked by the United Nations could by 15% more expensive than it is today.
This represents another example of water scarcity having a significant on the daily lives of millions. With no end in sight, this is driving farmers, food processors, and other heavy users of water to look for more water-efficient processes. This is a driving factor behind one of XPV’s five main areas of focus – demand destruction – whereby we look to invest in companies that have developed processes that reduce water consumption without having a negative impact on the end product.
Source: telegraph.co.uk