Lively Gains In Livestock (COW, ENZL, ARGT)

Just like the rest of the commodity complex, milk prices have soared nearly 60% over the last two years. The same can be said for the livestock side. Worldwide demand for beef is near all-time highs as the rising middle class in emerging markets continues to grow. This demand has grown at such fast levels that US exports of beef are at their highest levels in over seven years. According to the USDA, beef exports surged by 19% in 2010. This resulted in the smallest U.S. cattle herd since 1958. Unlike gold or oil, the sector has attracted very little in the way of retail investor attention. Institutional investors have begun to move seriously into the commodity segment. Harvard University's $28 billion endowment recently purchased a $20 million stake in a dairy cooperative. However, starting your own dairy farm can be an extremely expensive proposition. An investor looking to get into farming could easily need $250,000 or more to start. What's more, it takes two or three years for a rancher to increase herd sizes. Luckily, there are a few ways for the average Joe to participate in the growth of livestock. The iPath DJ-UBS Livestock ETN (NYSE: COW) and UBS E-TRACS CMCI Livestock ETN (NYSE: UBC) allow portfolios to bet on both cattle and lean hogs. For investors looking for more unusual livestock plays for their portfolio, both New Zealand and Argentina are two of the world's biggest producers of milk and cattle. The iShares MSCI New Zealand (NASDAQ: ENZL) and Global X FTSE Argentina 20 ETF (NASDAQ: ARGT) tap into these nations.