During the roaring 1990s, undergraduates aspired to be entrepreneurs who would someday start their own company, or aspired to be investment bankers.

If the initial data points of the 21st century are predictive, undergraduates may want to shift their career goals to farming and agriculture.

Meat and dairy prices, already forced higher by rising food demand in emerging markets and sky-high energy prices, are likely to move higher still, due to flooding in the Midwest U.S., The Associated Press reported Monday.

Already high corn costs had compelled farmers to reduce animal production, resulting in higher prices for these products. Now, beef, poultry, pork, eggs, cheese and milk prices are expected to rise even more, as owners are forced to slaughter more livestock to cope with the higher costs of raising their animals, or as they go out of business.

Livestock producers' costs soar

Economist Glen Langan told BloggingStocks Monday the livestock segment is facing its biggest transformation -- and highest costs -- in more than 30 years. "Corn costs have doubled, from $4 a bushel to $8, while energy costs have gone through the roof. This will force many producers out of the market," Langan said. "Only the most efficient, modern producers will survive, with a few exceptions. That will easily push meat and poultry prices 20% higher or more from current levels. Dairy is harder to predict, because it's more localized, but there will be dairy price increases, too."

With the markets still in a choppy/consolidation mode (or perhaps worse), it's best to consider including a few defensive stocks in your portfolio, and with the aforementioned in mind Smithfield Foods is worth an evaluation.

Smithfield Foods (NYSE: SFD) is the world's largest pork processor and hog producer. The company's products include fresh pork and processed meats sold under the Packerland, John Morrell, Lykes, Patrick Cudahy, and Smithfield Premium names.

Analysts expect Smithfield's F2008 revenue to increase 15-25% after a modest increase in F2007.

Meanwhile, beef margins are expected to widen, offsetting likely narrower hog margins. An improved product mix, including an expansion of value-added products, also has gladdened analysts' hearts.

Readers of this space know that numerous emerging market growth facts suggest that agriculture and agriculture services stocks are likely to remain star performers in the immediate years ahead, given the agriculture boom in emerging markets, and one preferred company worth an evaluation is The Mosaic Company.

Mosaic (NYSE: MOS) is one of the world's leading producers of crop nutrients -- nitrogen, phosphate, and potassium -- and animal feed ingredients.

Analysts really like Mosaic's revenue and earnings growth, which is being driven be increasing demand for its products from solid economic growth Latin America and Asia. Further, Mosaic's Esterhazy and Saskatchewan plant expansions in 2007 should increase potash capacity to about 11.7-12.0 million tons, and give MOS an edge versus its competitors.