Jim Rogers Says Investors in DuSolo Fertilizers Inc. (TSX.V:DSF) will “Do Very Well”

Legendary commodity investor, professor and author of multiple New York Times bestsellers Jim Rogers outlines why he thinks investors in Dusolo Fertilizers Inc. (TSX.V:DSF) will ‘do very well’. DuSolo has received almost all of its permits to begin production of high grade phosphates for direct sale into the local market near Campos Bellos, Brazil. Production and sales are both anticipated to begin in the final quarter of 2014. The company has multiple additional targets and two entire other projects in Brazil that give DuSolo the potential to rival other producers in the area including MbAC Fertilizer Corp. (TSE:MBC), Vale SA, and Yara International ASA (ADR) (OTCMKTS:YARIY).

Interview Transcript

James West:           So what, in your opinion – what commodities do you see as having the biggest upside for investors in the near future?

Jim Rogers:             Well probably agriculture. Agriculture’s a disaster, and has been a disaster for thirty years – certainly for a decade or two. The world has consumed more than it has produced for at least ten years now. Inventories are running down to historic lows in many commodities.

We’re running out of farmers. The average age of farmers in America is 58, in Japan its 66 – I doubt if you know many people who became farmers from your school whatever your school was or schools were. Because in America, more people study public relations than study agriculture. It’s a dying business. At least as far as the people are concerned. And that’s going to change, because agriculture has to become profitable and exciting. We’re not going to have any food at any price. All those guys are going to die. And all those young guys studying PR are not going to be able to raise cotton or corn or wheat. So I would suspect that’s where the best opportunities are.

James West:           Sure. Absolutely. Okay well let’s go back to the agricultural side of things now. How do investors play the agricultural space?

Jim Rogers:             Well the best way is to become a farmer. I told you we have no farmers in the world right now. Everybody you went to school with became a journalist or a stockbroker or investment banker or whatever. That’s all going to change in the future.

Or buy land and lease it to farmers, or buy shares of fertilizer companies.

James West:           So for example I’m a shareholder in a phosphate company that’s going into production in Brazil very soon – DuSolo Fertilizers – is that the kind of thing where an investor could benefit by exposure to the fertilizer business in Brazil, where consumption is growing?

Jim Rogers:             Yes, yes. That’s exactly what I’m talking about. Now I have no idea whether your company is competent, if they know what they’re doing or anything else. But if they do, and if they do have a good deposit, and they are low-cost producers, yes! They’ll do extremely well, there’s no question about that.

There are people who will tell you that some of the basic supplies for fertilizer are in decline, and so the world needs all the raw material they can get.

James West:           Brazil is in particular number three, and number one, and number two in so many agricultural exports, and I know that they import, on average, about 65 percent of their fertilizers, so do you think there’s an advantage for investors who are investing in the countries where they are consuming the fertilizers?

Jim Rogers:             Well of course. If you can produce it where it’s consumed, you have many, many advantages. All other things being equal. I mean, if you’re incompetent and don’t know how to run a mine, well then it won’t matter. It might be cheaper to put it on a boat somewhere and send it a few thousand miles. It depends on who’s doing what and the quality of the reserves, etc. But everything else being equal – yes. If they can produce and if they can produce at a competitive price, it is certainly a lot better to have the production right there in the country. And Brazil is going to continue to be an agricultural country.

James West:           Okay Jim. I’m going to leave it there. Thank you so much for your time.

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