The gloomy economic climate has forced many businesses to close up shop, but one fund manager says the business of protecting the world’s food supply isn’t going away anytime soon.

And that’s just one reason why agrichemicals company Syngenta (SYT: 40.92, 0.39, 0.96%) is a worthy investment right now, said David Carr, portfolio manager for the Oak Value Fund (OAKVX: undefined, undefined, undefined%) and chairman of Oak Value Capital Management in Chapel Hill, N.C.

Carr, who has had the stock in his holdings since the fourth quarter of 2008, believes Swiss-based Syngenta’s expertise in the crop-protection and seed business positions it for long-term growth. While many industries have seen demand buckle under the weight of the slumping economy, Carr said expectations for population growth have made strong, healthy crop yields a global necessity.

“What we like is that the underlying demand is a given. People are going to eat; it’s recession-proof,” he said.
What Carr also likes is Syngenta’s portfolio of patented products, which he believes provides the “best and broadest” protection against pests and diseases that threaten the world’s food supply. The company is keen on research and development, focused on developing technology that will increase output per acre for farmers across the globe.

“Farmers that don’t use the better technology end up being a lot less efficient,” he said. “They see a good price-value relationship — it still makes sense for them to spend the money on these products.”

Though Syngenta’s business, by nature, is closely tied to the commodities market, Carr stressed that the company is not a commodities business, and can therefore withstand fluctuations in the commodities market.

Still, the company hasn’t been immune to the troubles of the larger market. Syngenta’s stock, which is now trading in the $40 range, has lost nearly 38% of its value since last summer, when shares fetched as much as $66.78 a piece. For Carr, the fear-driven decline provided a one-of-a-kind investment opportunity.

“When [the stock] fell, people just didn’t pay attention… We felt it was a chance to pick up something really cheap with good, strong growth.”

And growth is certainly on the company’s agenda. The company is set on achieving a 15% EBITDA margin target by 2011 in its seed business, which at the moment, isn’t that profitable and trails big-name competitors Monsanto (MON: 79.415, 0.945, 1.2%) and DuPont (DD: 27.82, 1.01, 3.77%), Carr said.

With more than 24,000 employees in 90 countries, Syngenta has a sprawling international presence, but is smart about keeping its growth in check. Carr said the company has great working relationships with Eastern Europe and South America, but has purposely slowed growth in those areas to limit credit exposure.