As the food prices continue to rise amid supply chain issues, we think it could be wise to scoop up the shares of quality food stocks Danone (DANOY (OTC:DANOY)), Sysco (SYY), Tyson (TSN), and Darling Ingredients (NYSE:DAR). They are each expected to generate significant returns in the near term. So, let’s take a closer look.The FAO Food Price Index (FFPI) averaged 130 points in September 2021, up 1.2% from August 2021 and 32.8% year-over-year. High fuel prices, bad weather, and COVID-19 pandemic-led supply chain issues contributed to the huge price rise.
Furthermore, the demand for environmentally-friendly food products is boosting the industry’s growth. According to a Market Research Future report, the Plant-Based Food Market is estimated to reach $37.98 billion by 2027, growing at a 10.2% CAGR. Investors’ interest in food stocks is evident in the Invesco Dynamic Food & Beverage ETF’s (PBJ) 3.3% returns over the past month.
So, we think it could be wise to bet now on quality food stocks Danone S.A. (DANOY), Sysco Corporation (NYSE:SYY), Tyson Foods , Inc. (NYSE:TSN), and Darling Ingredients Inc. (DAR). They are well-positioned to gain from the rising food prices.