My question though, is prediction on how Precision Fermentation will affect the food industry and agriculture. It sounds like by 2030, the dairy industry will essentially be bust followed by meat and egg production in the mid 2030's - if I understand this correctly. My concern is my investment in Nutrien, should this occur. This isn't really all that far into the future.
Also, not sure if 5i has an opinion on Tony Seba's views of the future in general, but I was wondering if investing in an ETF with Precision Fermentation content is a suitable investment. I came across EATV which has a "smallish" portion in this sector, but has a relatively high expense ratio and light volume. Your thoughts ?
To our limited understanding of precision fermentation involves the re-engineering of micro-organisms (found in yeast for example) to produce animal proteins/fats where taste and texture is supposed to be similar. It is used in the production of diary and eggs but not as readily in meat to what we have seen, although it is possible. The technology seems to have been around for a number of years and while it is interesting we do not think it will caue any of the industries mentioned to go bust so soon as 2030. Cost and consumer preference are our biggest concerns as this technology will not be cheap to implement and there will be significant consumer pushback, especially in meat products. The sustainability benefits are rears, but we have seen plant based products takeoff to solve this. We think it is further away to be concerned from an investment standpoint. We would not recommend EATV, due to size and expense ratio, but if someone wants exposure to AgTech, then it is one of few options.