As I said to SB more wise words.
Thank you both.
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As I said to SB more wise words.
Thank you both.
https://sendy.tarawera.co.nz/l/J6oLV...Kdb4hPkjj5bHew
Pleasing seeing a discussion on this subject.
Losing food production land to Carbon Farming makes no sense to me.
Carbon Farming does not produce food or valuable export earnings.
Good points Iceman and agree.
However to clarify, the re-brand to Silver Fern Farms wasn't a Chinese thing, but was some years prior - maybe about 2010 perhaps. Much of it was to move away from PPCS/Richmond situation at the time, and the past history/takeover and become more one company. Which has worked!!
Markets have evolved in recent years and will continue to evolve - with environmental issues become more at the forefront, along with animal welfare considerations etc - in some, not all markets. While their retail offer has a reasonably high profile, this will be a small part of their total business. But some of the other programmes are key, particularly around foodservice and their beef business. Much of their product is still more a commodity and largely undifferentiated, and due to the nature of the product (plus rules/regs), always likely to be. For example, manufacturing beef, lamb flaps, offal etc.
The focus has for past years as been on the meat. But expect a little more focus on other aspects in the future, like skins and rendering - where they've had JV's and some of these are coming to an end. I think some of this is coming back inhouse and no doubt there will be a margin/value associated with this.
I would argue that they are probably becoming less geographically spread in some ways - and both lamb especially, but also beef becoming much more reliant on China - particualry because of the value it can offer. That is part of the worrying issue currently - if any plants are delisted by the Chinese because of C19 then there is a very signifcant and quantifiable drop in revenue. Lamb plants for instance couldn't procure stock without exporting to China - the difference is $'s per Kg.
Farmer support seems good - and without livestock supply, they are nothing. I would be really interested in a breakdown by species, as believe heavily led by beef. They seem to have arrested the slump in livestock supply from a number of years ago, and success and profitability helps engender more farmer support - so another good divvy and supply payment will further ingrain this. Performing better than their competiton also helps in farmers minds.
They are clearly more focused than in the past - and focus I imagine would be on other aspects of the business rather than finances, debt and cashflow. I was looking at a AR from 6-7 years ago and did note the whole senior management team has changed since then.
Definitely agree, a serious (and sizeable) business!! :)
Excellent leadership,
Strategic Plan on course.
Strong balance sheet.
Heavy investment in plant.
Increasing supplier shareholder support.
Excellent fundamentals ie PE ratio and dividend yield.
Together with your and Iceman's comments, means the market is waking up to SFF being a sound and very profitable investment.
Buyers at $1.40,$1.36 ad $1.30.
I thought suppliers would have finished buying to get year rewards at the end of December,which is the year end for SFF.
So am a little surprised to see the share price continue its upwards trajectory since them.
Perhaps more investors are waking up to SFF's good fully imputed dividend, sound prospects, and modest ratios?
About 29k through at $1.40.
Another buyer lining up for $40k at $1.40.
Could be the level for the timebeing.