SFF calling directors of the future.
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SFF calling directors of the future.
News release on China office being opened.
Clarity needed on shareholder resolution.
SFF is in a trading halt since last week pending capital raising developments.
So who will it be?
The Chinese? The Brazilians? Or some dark horse from out of left field?
Any ideas? Any suggestions? Any preferences?
Investment is one thing, but control is another. If they give away control, think farmers will vote with their feet.
I blame a failure of governance by the farmer shareholders for Siver Fern Farms current siuation.
They should have used the outcome of the Bell Group & others v PPCS litigation as an excuse to clear out directors and management.
Boop boop de do
Marilyn
Anyone thinking Chinese investment is a home run for Chinese access should look carefully at the sequence of Bright Investment in Synlait Milk and its insistence on control even when dropping under 50% shareholding. And the aggressive takeout of shareholders in Synlait Farms provides equally little ground for optimism for long term future of a farmer partnership with a large corporate shareholder.
How does an Investor get control and still be confident the farmers will supply. An interesting set of interests to negotiate through.
A farmer grows stuff to sell.
A corporate farmer generally looks at vertical integration. In the case of SFF, from the pasture to the plate. In the case of Exxon, from the oil well to the petrol pump.
It allows for much closer control of costs, and provides options as to where the profit can be made or declared.
It is not easy to see the interests of farmers and corporate farmers aligning closely over time.
Farmers want the best price for their sheep and cattle and the best profitability of SFF. How could it be achieved? Who forced SFF borrowing so much? Farmers, not foreign investors!
Neither Shanghai Maling, the now revealed purchaser, nor SFF seem to fit corporate farming in that neither company actually owns farms. However your comment as to options as to where the profit can be taken seems to fit well with both Bright and Shanhai Maling retail and wholesale distributing operations. Somewhat surprisingly with Synlait Milk, Bright did not seem to give any advantage to Synlait when NZ powder exporters were subjected to banning and later individual approvals.