Incitec Pivot IPL is the number one supplier of fertilisers in Australia.

The company has extensive operations throughout the United States, Canada, Mexico and Australia, including over 20 manufacturing plants, scores of distribution centres and well-established channels to market. IPL employs approximately 4,500 staff worldwide.

The company transformed itself in 2006 when it bought explosives make Dyno Nobel.

IPL is now also a leading supplier of explosives products and services in North America – the largest industrial explosives market in the world and also leads the market as a supplier of explosives products and services in Australia (which is the third largest industrial explosives market in the world).

With these strong market leadership positions, we believe IPL is situated as one of the best shares to invest in.

The right stuff

We’re big believers in the prospects of food and agriculture shares.

The long-term bull market in food and agriculture shares has been a clear trend for a considerable time.

Before the onset of the GFC, food prices were continually hitting new highs as a falling US dollar, and increased demand from the burgeoning middle countries in developing countries, produced a boom in food commodity prices.

Additionally, the increased focus on biofuels has seen a new source of demand from increasingly scarce food resources.

The recent unrest – and political upheaval – in countries such as Tunisia and Egypt brings into sharp relief just how damaging food inflation can be to the globe’s geopolitical situation.

Riding the rough seas

That said, it’s always a choppy business owning shares related to the agricultural industry.

At the very least, weather conditions will always be problematic. Over the just the last few months, we’ve experienced floods, cyclones and earthquakes.

However, if share investors are willing to ride out the bumps, food and agriculture shares have solid long-term prospects.

Recent action

IPL shares have recently pulled back from its highs as the impact of the January floods throughout Australia become more apparent.

In February, the company said the weather conditions throughout Australia would hit full-year profits by $38 million. This equates to around 10% of the overall profit forecast of around $400 million for the twelve months to 30 September 2011.