MBAC Fertilizer (MBC.TO) is a development stage integrated phosphate fertilizer producer. Although MBAC is headquartered in Toronto and traded on the Toronto Stock Exchange, the company’s three major assets are in Brazil, as well as management and the majority of employees.

By now, all investors know the investment thesis based on growing population, growing discretionary income, and urbanization in developing countries driving diets that are richer in protein (meat, diary, eggs, and soy). This drives an increased demand for grains, soy, and agriculture’s supporting industries, including fertilizer. This is a long term trend that we expect to continue, despite recession in Europe, lackluster growth in the US, and slowing growth in China. In developed countries where diets are already sophisticated, growth in GDP per capita has little impact on food consumption. And, even in times of recession, people still must eat.