Australia has been touted as the "future food bowl of Asia" for many years now and several food retail and agriculture sector companies have capitalised on this forecast to drive their growth.
OECD forecasts put demand for beef, chicken, pork and lamb on the wish list of burgeoning middle-class Asian consumers and there has been plenty of movement from institutional investors looking to jump on stocks in the food and staples arena too.
The so-called "dining boom" is clearly still in play for these ASX-listed food companies, but investors will have to be quick to capitalise on any short-term share price slides to get on the bandwagon at an affordable price for these three performers.
Freedom Foods Group Ltd (ASX: FNP)
The share price in diversified food company Freedom Foods Group Ltd was up 1.1% on Friday to $5.14, a slide from its 2018 calendar year high of $5.65 on January 24.
Investors looking for an in with Freedom Foods will likely have noticed how cleverly the company has positioned itself in a niche part of the sector – providing allergen-free healthy food options. This has helped the company to clock a steady share price gain in the last 5 years and win the approval of Asian-market buyers.
Peer Bega Cheese Ltd (ASX: BGA) has been much more susceptible to overall market volatility during the same period, but is tracking upwards again now with a February 16 share price of $7.22 up from just $5.44 at the same time last year.
Investors looking to get in at the right price with Freedom should note analyst predictions that prices will be driven upwards due to long-term growth opportunities in the high-growth sectors of healthy and allergen-free foods.
A short time share price boost is also likely if results handed down in Freedom's interim report on February 28 show a favourable balance sheet and solid prospects for the remainder of 2018.
Tassal Group Limited (ASX: TGR)
Salmon producer Tassal Group has seen share price slides of about 20% in the last 12 months, but investors might regain some confidence in the stock if its February 23 half-yearly results are above expectations– meaning Tassal is likely in buy territory right now.
Tassal Group recently traded for around $3.51, a drop from $4.48 this time last year.
Tassal has struggled to keep up with Atlantic salmon peer Huon Aquaculture Group Ltd (ASX: HUO) in the short term, with Huon opening up 3.4% on February 16 at $4.86 after a fairly volatile price chart over the last 12-months.
But Tassal is not out of ideas yet, with analysts citing the company has good scope to build brand loyalty over time, with strong production process improvements evident in the company's ability to expand quickly.
Competition in the sphere is strong for Tassal so it will need to boost performance going forward, but its current share price could be considered a decent buy for investors who can see a bright future for salmon producers internationally.
Costa Group Holdings Ltd (ASX: CGC)
Australian horticultural company Costa Group grows various types of foods, including tomatoes, berries, mushrooms and avocadoes.
Costa Group Holdings shares were marginally up on February 16 to $5.79, but have been tracking slightly down this month from a February 1 close of $6.25.
Investors who looked to buy into Costa should think seriously about the current share price as top brokers out of Macquarie last year increased their Costa Group share value up to $7 after Costa announced it would increase its shareholding in the Moroccan-based blueberry African Blue joint venture late last year.
Share prices could zoom again for Costa if the half-year results they announce on February 27 are above guidance.
One to watch for sure.
