The propensity of branded food producing companies to earn superior returns relative to the cost of capital, and commensurately, perform well on the stock market lead us to write this paper. Upstream weaknesses such as global warming and impact of year to-year variations in temperature on crop yields, as well as water and irrigation shortages negatively affect agricultural output. However, both population growth and density continue to constitute strong demand for branded food products. High economies of scale found in food producers such as large capital investment and advertising, marketing and promotions (brand building) generate barriers to entry for incumbent companies to share disproportionately in the food production value chain.
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