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Back in September, I wrote about investing in agriculture supply companies. To paraphrase a quote from my earlier blog entry, one of the reasons that agriculture is booming is the demand for food products based on rising income levels in developing countries, prompting an increase in the consumption of protein, the need for more grains to generate ethanol and worldwide population growth. "At the same time, the amount of arable land is shrinking, water supplies are under duress, weather is less predictable and yield improvements are slowing." In short, higher demand, less supply.

A company that will reap the rewards of this economic equation is Bunge Limited (NYSE:BG). To quote Google Finance:

Bunge Limited (Bunge) is a Bermuda-based holding company. Through its subsidiaries, the Company operates as an integrated, global agribusiness and food company operating in the farm-to-consumer food chain. It operates through three divisions: agribusiness, fertilizer and food products. These divisions include four segments: agribusiness, fertilizer, edible oil products and milling products.

Check out Bunge on Google Finance

Bunge's stock has run up recently, but there is still room to grow (no pun intended). Buy it on the dips, big time! Orders for fertilizer across this sector are massive going into the next several years. As farmers sell their crops at record price levels, they are flush with money. And they need ever greater crop yeilds. Buying into agri-business suppliers is a good investment. Bunge is a great company with great upside.

DISCLOSURE: I own shares of Bunge. Always do your research before you buy. Half a stock's worth is the sector it's in.

BG 1-yr chart:

Source: Bunge Still Has Room To Grow