https://farmersweekly.co.nz/section/...adage-payments
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Ouch .nasty
"More countries have joined China in banning imports of Brazilian beef following the discovery of two cases of mad cow disease.
The ABC reports that Russia, Indonesia, Egypt, Iran and Saudi Arabia have all joined China in ban either in total, from infected states or certain processing plants."
https://farmersweekly.co.nz/section/...l-meat-imports
Solid old volume gone through today at $1.09-$1.10.
293k traded, and to put in context, in the last 12 months only 2.9 million have been traded - 10% of the last years turnover in a day? Bulk of these in one hit? Maybe a new top 10 shareholder?? (Only need >268k shares).
Is Percy getting more "well positioned"?? Another good year in the offing??
Great day out on the water after lots of wind last couple of weeks.
You’re right it’s an all time high, reached a few months ago as well. I expect we will see an upward pressure in the last quarter of the year as farmers top up their holdings like happened last year to ensure maximum return from this great year we’re having 😀
Growth: NZ Beef exports, up 39 per cent to $299m year on year.
Exports to the top three beef markets all increased, with China up 89 per cent to $117m, the United States by
31 per cent to $102m and Japan by 31 per cent to $15 million.
Sirma Karapeeva, MIA chief executive, said volumes of beef exported during August were also historically high.
“A number of factors are contributing to tight global beef supplies. This includes herd rebuilding in Australia
and export restrictions in Argentina. New Zealand exported a total of 35,327 tonnes during August, which is 71
per cent higher than the average beef export volume for the month over the last 30 years. .
In early September, China halted imports of Brazilian beef, due to detections of atypical BSE in two cattle in
Brazil. This did not affect the August imports but it may have an impact on trade over the next few months.
Brazil is the largest beef exporter to China and our understanding is that the situation is not fully resolved yet."
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Just one positive announcement,after another.I am getting used to them..lol
https://www.usx.co.nz/uploads/paperc...pdf?1633037734
Simon says they are ‘well positioned’!!
https://www.odt.co.nz/rural-life/red...r-solid-profit
SFF lifting minimum pay
https://www.stuff.co.nz/business/far...d-retain-staff
Main competitor expecting lift in trading profit.
Alliance to announce rise in trading profit | Otago Daily Times Online News (odt.co.nz)
Thanks for sharing this SB. I heard a rural report on radio yesterday saying all mutton is now being taken by China and prices are 5-6x higher than the traditional Pacific Island market for mutton.
The freighting availability and price continuous to be a major issue and will no doubt be a serious issue for a few years yet. But I heard the Fonterra CEO say that the Kotahi partnership is definitely helping Fonterra & SFF (and NZ exporters in general)
Mutton is forecast to be $5.70 - $6.80 for the coming months, based on Chinese demand. Great money for an old ewe!
Same with lamb, flaps now into China where in the past use to go to the Pacific Islands or PNG at a couple of bucks - so the 5-6x is about right. About 10% of the carcase. Now taking more forequarters and also other cuts such as heavy legs. Potential for a correction in the Chinese market though....
Go back further though and the skin and the pelt was worth more than the meat!! Now these are practically worthless.
Will be interesting to see stock/inventory and compare against last year (at end of FY). Alliance saying they have more stock than had anticipated.
Hopefully we start to see some share price strength towards the end of the year, especially as farmers look to share up - think they need to be holding at 31/12 to get the supplier rebate. All info is pointing that its been another good year, competitors (Blue Skies, Alliance) indicate stronger profitability, and markets are strong. Only paid out a small portion of the last 2 years profits as dividends, so has plenty of cash to reinvest or distribute.
Any hiccups in China with either the market or domestically is a risk. Prices are high, so always a chance of a correction, epecially when China takes 40-50% of our red meat exports. Global logistics are also a risk - I think they are better placed than most exporters with Kotahi, and getting product away, but cost is another matter.
Has been at that $1.10 level a few times, but would be good to see it bust through that. Otherwise, another good divvy in prospect.....
Yes I expect we will see SP firm up on slightly better volume pre-Christmas. All we are hearing from SFF and other in the industry, as you point out, indicates a bumper profit this year. Given they replenished the coffers last year and ripped into the share registry clean up, I am confident we will see a 7c fully imputed divie in April :t_up:
Company paid out $26.2m fully imputed last year - so $13.1m to the Coop. Dividend and patronage reward was $8.1m. Company kept the remaining $39.2m of NPAT.
Understand the need for the Coop to build their reserves, and a buffer for any rainy days ahead. Spent a bit on redeeming those shares, and should be good for remaining shareholders, and for NTA/EPS etc.
Would think potential for a stronger payout ratio and larger dividend. 7c equates to circa $7m - sure they can afford at least that! :blush: