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A new era for commodities Cheap resources underpinned economic growth for much of the 20th century. The 21st will be different. NOVEMBER 2011 * Richard Dobbs, Jeremy Oppenheim, and Fraser Thompson Source: McKinsey Global Institute, Sustainability & Resource Productivity Practice In This Article Exhibit: In little more than a decade, soaring commodity prices have erased a century of steady declines. About the authors Comments (2) Has the global economy entered an era of persistently high, volatile commodity prices? Our research shows that during the past eight years alone, they have undone the decline of the previous century, rising to levels not seen since the early 1900s (exhibit). In addition, volatility is now greater than at any time since the oil-shocked 1970s because commodity prices increasingly move in lockstep. Our analysis suggests that they will remain high and volatile for at least the next 20 years if current trends hold-barring a major macroeconomic shock-as global resource markets oscillate in response to surging global demand and inelastic supplies. Back to top Demand for energy, food, metals, and water should rise inexorably as three billion new middle-class consumers emerge in the next two decades.1 The global car fleet, for example, is expected almost to double, to 1.7 billion, by 2030. In India, we expect calorie intake per person to rise by 20 percent during that period, while per capita meat consumption in China could increase by 60 percent, to 80 kilograms (176 pounds) a year. Demand for urban infrastructure also will soar. China, for example, could annually add floor space totaling 2.5 times the entire residential and commercial square footage of the city of Chicago, while India could add floor space equal to another Chicago every year. Such dramatic growth in demand for commodities actually isn't unusual. Similar factors were at play throughout the 20th century as the planet's population tripled and demand for various resource

the top 4 contenders are: 1. Green building materials - I'm not sure it would be my thing, but investors across the board seem to think this area is ripe for a hit. 2. Carbon IT - With some sort of cap and trade a near certainty, the interest is picking up in one of the few areas in carbon that looks like a "venture bet". I should know, I have one of these companies myself. 3. Food related technologies - High food prices and rising fertilizer costs, what can I say? 4. N-generation solar technologies - Everyone not in the first wave is looking to get in to the 4th wave. Not sure venture investors will fare better in the 3rd or 4th wave than they did in the second, but they are going to try.

"Fish farming holds tremendous promise in responding to surging demand for food which is taking place due to global population growth, the report says."

In recent months, chains including Wal-Mart Stores, Kohl's, Safeway and Whole Foods Market have installed solar panels on roofs of their stores to generate electricity on a large scale. One reason they are racing is to beat a Dec. 31 deadline to gain tax advantages for these projects. So far, most chains have outfitted fewer than 10 percent of their stores. Over the long run, assuming Congress renews a favorable tax provision and more states offer incentives, the chains promise a solar construction program that would ultimately put panels atop almost every big store in the country. The trend, while not entirely new, is accelerating as the chains seize a chance to bolster their environmental credentials by cutting back on their use of electricity from coal.

"We showed that copper ions diffuse out from a brass plate into a fish tank filled with seawater, and within 40 hours the copper killed 99.99% of the Vibrio food poisoning bacteria contaminating the living fish and shellfish," says Dr Jeong-Weon Huh from the Department of Health Research, at Gyeonggi-do Institute of Health and Environment, Republic of Korea. The copper is absorbed by the bacteria, causing them to die and fall off the gills and skin of the fish. Vibrio are even flushed from the internal organs of the fresh fish, sinking to the bottom of the tank. The remaining copper ions are absorbed from the seawater in the tank by sand and polyester filters, leaving safe, clean fish ready to be eaten by restaurant diners. "By being able to remove the copper ions, we can prevent people from consuming excess copper themselves, but let them safely enjoy any kind of fish, either raw or cooked," says Dr Jeong-Weon Huh.

Range Fuels, Inc., a company focused on green energy and the production of cellulosic ethanol, announced today that it is collaborating with Ceres, Inc., a leading company in the research, development and commercialization of purpose-grown herbaceous biomass feedstocks. Range Fuels will explore the role that non-invasive, high-yield, non-food sources of biomass might play in Range Fuels' plans to produce cellulosic ethanol on a commercial basis. Ceres is primarily focused on the development of annual and perennial grasses, such as high-biomass sorghum, switchgrass and miscanthus.

Shell will no longer invest in renewable technologies such as wind, solar and hydro power because they are not economic, the Anglo-Dutch oil company said today. It plans to invest more in biofuels which environmental groups blame for driving up food prices and deforestation

The world's metals producers are still looking to China as the panacea for all ills with the often expressed hope that the country's need to support the domestic metals smelting, refining and steel industries will be the saviour of this sector and supply sufficient demand to support prices in the West. Consequently Chinese data are followed intensely and the latest information suggests that copper, iron ore and steel demand are holding up well - indeed increasing substantially - while aluminium is flat and zinc and lead suffering. But Chinese data requires interpretation and can be misleading as pointed out by Macquarie's Bonnie Liu in her latest China Commodities Weekly research note, and she concludes that there has to be some doubt that the latest extremely strong figures can be maintained. The notes below are abstracted from Macquarie's latest China Commodities Weekly and give us some considerable food for thought.

London-headquartered Luvata Group, a major semis fabricator, announced its intention to establish a new production facility in India as it endeavours to capture around 10% of this emerging market by 2015. The company anticipates that growth in the domestic heat transfer market will surge by 25% per annum, driven by demand from the processed-food, supermarket retail, horticultural crops and pharmaceutical sectors. Development of an effective refrigeration supply chain is one of the targets of the Ministry of Food Processing Industries and Luvata has highlighted opportunities in reducing the waste produced by India's large fruit and vegetable market.

"There is currently no uniform approach to nanomaterials at the EU level and no EU register. However, nanomaterials are, to a limited extent, covered by EU sector-specific regulation. For instance the Food Information Regulation, the Cosmetics Regulation, the Medical Devices Regulation and the Biocides Regulation contain specific provisions on nanomaterials. While moreover applying to substances in the nano form, the Regulation on Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) does not currently contain specific provisions on nanomaterials."

Can you keep your eyes of the wagging tail. This is simple but effective advertising