Food Supply

Food supply is a topic that touches everyone's life because, let's face it, we all need to eat. Recently, there's been a lot of chatter about food supply and how it's doing. Simply put, it's about whether there's enough food going around for everyone and how this affects us all. This isn't just about having enough to fill our plates; it's also about the prices of groceries and how companies that make or distribute food are doing.

One thing that's been making headlines is the rise in food insecurity, especially during the summer when kids don't have access to school meals. Reports from places like Mercer County and studies like "Map the Meal Gap' show that more people are struggling to get enough to eat. For example, Mercer County has seen a 2% increase in food insecurity, affecting thousands of families. In Maine, over 175,000 people are expected to be food insecure, a staggering 25% increase from the previous year. This isn't just a number problem; it's a real issue affecting real families. Thankfully, programs like the Summer Food Service Program in Wisconsin are stepping up to fill the gap, offering free meals to children and teens in need during the summer months.

But what does all this mean for our portfolio? Well, companies that deal with food, like Costco Wholesale Corporation, Berkshire Hathaway Inc., and Alimentation Couche-Tard Inc., are directly impacted by these trends. A contraction in food supply can mean higher costs for these companies, squeezing their profits and potentially affecting their stock prices.

However, these companies are not just passive observers in this scenario. Their responses to these challenges, such as how they manage costs, adapt to changes in food availability, and cater to consumer needs, are crucial. Our focus on quality companies that exhibit strong growth potential, provide good value, and have a conservative approach to leverage means we're closely monitoring how these companies navigate the current environment.

This broader picture of rising food insecurity and its implications paint a challenging but clear landscape. In a world where food supply issues are becoming increasingly prevalent, our investment strategy remains committed to identifying and supporting companies that are not just surviving but thriving by adapting to these changes. Whether it's through innovative solutions to food distribution, strategic partnerships to enhance supply chains, or initiatives to address food insecurity, the companies in our portfolio are well positioned to face these challenges head-on.

The ongoing conversation about food supply underscores the interconnectedness of our food systems, economies, and communities. As your portfolio manager, I'm dedicated to ensuring that our investment strategy not only reflects our shared values of growth, value, and conservative leverage but also contributes to a resilient and sustainable future. By focusing on companies that play a crucial role in the food supply chain, we are not just looking for good investments; we are also supporting efforts to ensure everyone has access to the food they need. This holistic approach is at the heart of our investment ethos, guiding us through the complexities of the market and the world at large.

Citations

https://www.fox6now.com/news/summer-food-service-program-wisconsin-what-families-should-know
https://www.wfmj.com/story/50825116/mercer-county-reports-2-increase-in-food-insecurity-since-2021
https://www.newscentermaine.com/article/news/local/outreach/feed-maine/study-shows-food-insecurity-remains-struggle-for-maine-families/97-a25cd30f-f63d-4a8d-9f2c-f0c2793503e4