8 Best Small Cap Agriculture Stocks to Buy

4. Fresh Del Monte Produce (NYSE:FDP)  

Number of Hedge Fund Holders: 14 

Market Capitalization as of August 9: $1.29 Billion  

Fresh Del Monte Produce (NYSE:FDP) grower and supplier of bananas, alongside other fresh fruits, vegetables, and poultry products. The company packages and sells its products to consumers at local grocery stores. Fresh Del Monte Produce (NYSE:FDP) also operates freight and logistics services. For the quarter ending on March 30, Fresh Del Monte Produce (NYSE:FDP) reported that its revenue increased 10.03% to $4.32 billion and net income increased 124.53% to $26.10 million. The company is valued at $1.29 billion as of August 9.

On May 14,  Fresh Del Monte Produce (NYSE:FDP) announced a new partnership with Vellsam Materias Bioactivas, a producer of biotechnological solutions to utilize pineapple residues from Fresh Del Monte’s Kenyan subsidiary to produce biofertilizers. The new biofertilizer plant, located near Del Monte Kenya, will produce various biofertilizers for internal use and sale to other farmers in Kenya and East Africa. According to Precedence Research, the global biofertilizers market was valued at $3.14 billion in 2022 and is projected to grow to approximately $9.14 billion by 2032, growing at a compound annual growth rate (CAGR) of 11.27%. The growth is driven by the increasing demand for sustainable agriculture, organic food products, and supportive government policies. The new plant will help support the local economy and enhance Fresh Del Monte’s impact in the region by maximizing residue utilization, improving soil fertility, and meeting the growing consumer demand for nutritious, sustainably grown produce.

As of the first quarter, the stock is held by 14 hedge funds and the stakes amount to $51.13 million. Millennium Management is the largest shareholder in the company and has a position worth $14 million as of March 31.

Fresh Del Monte Produce (NYSE:FDP) is trading 12.28 times its earnings, which is a 28% discount compared to the sector median of 17.19. Analysts expect the company’s earnings to fall by 3% this year, however, analysts have a consensus Buy rating on the stock and their average price target of $30.25 represents an 18% increase from current levels. FDP is therefore one of the best small-cap agriculture stocks to buy.