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Water Woes.



November 24, 2009 – Comments (8) | RELATED TICKERS: KO , SBMRY.PK.DL

Agriculture is the largest consumer of water in almost every country. In many countries around the world, farmers are facing difficult times because of water shortages. In some cases the problem is discovered when one private interest sucks the water out from under a landowner in order to ship it elswhere. Pickens is doing it in Texas, Nestle in Maine, and Coca Cola in India. Syngenta does it by shipping produce, SABMiller by shipping beer.

The problem can be solved for some private interests by asking the other private interests, the landowners, to spend money to conserve water. The International Finance Group, a branch of the World Bank, and Standard Chartered Bank, a global financial institution, would like to lend money to the farmers so that they can buy products from New Holland Agriculture in order to conserve water.

This would be good for the farmers because they would carry the additional risk of having a loan to pay in bad years. This would be good for Syngenta, because they could make farmers sign contracts with them to sell produce in order get those loans. This would be good for local communities because they could replace locally grown produce with processed food from Syngenta. This would be good for New Holland because they would be paid for their drip irrigation systems. This would be especially good for Standard Charter if they could get Governments to provide them with money to lend. This would be good for Nestle, Pickens, Coke and Miller because there would be additional water available to them to bottle and ship at no additional cost.

Here is the plan, as spelled out by Syngenta, Coke, Miller, New Holland, Nestle, Standard and the International Finance Group. Pickens, in Texas is on his own.

This is enough for me to red thumb Coke and Nestle. (NSRGY.PK)

8 Comments – Post Your Own

#1) On November 24, 2009 at 11:39 PM, devoish (64.79) wrote:

Reducing wasted water through more efficient irrigation is going to happen because it has to. This report is a marketing effort to pass the higher cost of water onto farmers and away from from coke, nestle and miller.

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#2) On November 25, 2009 at 12:09 AM, Tastylunch (28.58) wrote:

Thanks for thelink devoish, that's highly interesting.

I have a feeling water fights in the 21sts century will be unlike anything we've seen in a couple hundred years.

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#3) On November 25, 2009 at 12:20 AM, topsecret09 (87.69) wrote:

  The report In your link should be a must read for any Investor. Very good Information that gives one many Ideas almost Immediately. I have known for many years that we could be looking at serous water shortages,but I really never found many ways to profit from the scenario. In Las Vegas,there have been many articles about lake Mead,and how It Is theoretically possible for the lake to dry up  within 3 to 5 years. Water shortages should concern everybody,and we should all do our part to try and conserve. In Fresno California they have started Installing water-meters on EVERY HOUSE within the city limits.  Thanks for the great Information,I plan to use It to look for public companies that stand to gain from these dynamics.  TS

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#4) On November 25, 2009 at 12:33 AM, topsecret09 (87.69) wrote:

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#5) On November 25, 2009 at 12:47 AM, topsecret09 (87.69) wrote:

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#6) On November 25, 2009 at 1:06 AM, topsecret09 (87.69) wrote:

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#7) On November 25, 2009 at 2:32 PM, eldemonio (97.90) wrote:

I know that a lot of the irrigation ditches used in my area are 100 years old, if not older.  The water lost through seepage is ridiculous.  Farmers and irrigation authorities claim that the ditches are clay lined, but ditch maintenance amounts to the guys opening and closing the gates, nothing more. 

Water is like gold where I live - Cadillac Desert  is a good read for anyone interested in understanding the history of this problem. 

Damn, I'm thirsty. 

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#8) On November 26, 2009 at 12:18 PM, devoish (64.79) wrote:


Thanks for the links to the index, and also for the shout-out in the "will India run dry" article.

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