Potatoes As An Investment

Potatoes As An Investment

Potatoes As An Investment

Lamb Weston is one of our holdings in our Global Equity Income Portfolio (GEIP). Split off from Conagra in 2016 as a standalone company, it has become one of the better performers in the portfolio. This despite, or perhaps, because of the fact that its sole product is potatoes and specifically french fried potatoes that you eat at fast food restaurants. It should not be taken for granted that when an economy does well there is much that does well also. Potatoes have done well as restaurants have continued to perform in a growing economy and as they have become a bigger part of the diet in the developing world. Lamb Weston. Lamb Weston is the primary supplier of frozen french fries to McDonalds.

But it’s not a simple process. Any attempts at scale farming have to try to harness the variability that comes from natural growth. And there is a great deal of thought and engineering that goes into the process of planting, cultivating, harvesting, sizing, cleaning, and finally cutting potatoes into fairly regular french fry pieces. I include two videos, one from Lamb Weston that shows this process and another by QV Foods in England that better shows how potatoes crops are seeded, cultivated, and harvested. Enjoy!

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