Tegel IPO

[Hectorplains]

Will New Zealand consumers’ per capita consumption of chicken meat continues to increase similar to Asia, Africa and South America?
Will there be further expansion into new export markets?
Will there be improved margins through productivity gains?
How about consumer spending pattern?
Will chicken become alternative proteins as red meat prices are high and less healthy when compare with poultry?
Can they maintain reasonably strong balance sheet while becoming competitive player?

Thanks.

Will New Zealand consumers’ per capita consumption of chicken meat continues to increase similar to Asia, Africa and South America? Yes, it already is. It's a firm trend.
Will there be further expansion into new export market? There is that potential. However, the immediate focus should be on raw to Australia - that's the market that's recently opened to them. Plenty of potential there, before they go chasing new markets.
Will there be improved margins through productivity gains? Yes - look at the new mega farm in Northland. It's not going to be a one off...
How about consumer spending pattern ? Irrelevant, it's a protein staple.
Will chicken become alternative proteins as red meat prices are high and less healthy when compare with poultry? It already is - red meat vs white meat sales in NZ are all one way.
Can they maintain reasonably strong balance sheet while becoming competitive player? Yeah, well this is the BIG question. So far, they'd get an 'unsatisfactory' grade.

[Valuegrowth]

Thank you so much.

Will New Zealand consumers’ per capita consumption of chicken meat continues to increase similar to Asia, Africa and South America? Yes, it already is. It's a firm trend.
Will there be further expansion into new export market? There is that potential. However, the immediate focus should be on raw to Australia - that's the market that's recently opened to them. Plenty of potential there, before they go chasing new markets.
Will there be improved margins through productivity gains? Yes - look at the new mega farm in Northland. It's not going to be a one off...
How about consumer spending pattern ? Irrelevant, it's a protein staple.
Will chicken become alternative proteins as red meat prices are high and less healthy when compare with poultry? It already is - red meat vs white meat sales in NZ are all one way.
Can they maintain reasonably strong balance sheet while becoming competitive player? Yeah, well this is the BIG question. So far, they'd get an 'unsatisfactory' grade.

[Valuegrowth]

At different times different stocks can have strong demand over others in the the Agriculture(food) sector. Some are also maintaining consistency in good and bad times. In my opinion strong companies in this sector should do well.Industrias Bachoco, S.A.B. de C.V. IBA and its subsidiaries is a premium poultry producer of the United States and Mexico. Over the last year, this stock has rallied against the 1.2% loss incurred by some others in the sector. They have increased investments in growth-oriented projects and have done some strategic acquisitions as well. Tyson Foods, Inc. TSN is a U.S.-based multi-national food company. This stock also has rallied, as against the 1.2% loss incurred by the sector over the last one year. Higher sales of protein-packed brands, synergies and gains from tax savings are anticipated to bolster the company’s profitability in the quarters ahead. Pilgrim’s Pride Corporation PPC produces, processes, markets and distributes frozen and fresh chicken products in the United States, Mexico and the U.K. It also has gained over the last year.

It seems some companies in the USA are not exporting food items to China and they have export market in countries like UK, South America which include Mexico.

When market tanked, food stocks such as Pilgrim's Pride Corporation (PPC), JBS SA (BVMF) have gone up yesterday.

MHP is another successful poultry related company in Ukraine.Thier NASHA RYABA trade market is one of the most recognizable and the strongest product brands in Ukraine. They continue to follow its strategy of diversified export markets and seek for new business opportunities. Last month they also had a plan to acquire French poultry processor.

Hopefully, Tegel also could perform better if they maintain growth while seeking new business opportunities.

[kiwidollabill]

^The likes of Tyson have invested a large amount of $$ in Pig farms in China. Whole carcass is killed in China, shipped to the US for boning/cutting, then shipped back to China....

[Balance]

^The likes of Tyson have invested a large amount of $$ in Pig farms in China. Whole carcass is killed in China, shipped to the US for boning/cutting, then shipped back to China....

NZ chickens cannot compete with prices in Asia - one just have to go to countries like China and Thailand to know that we pay a lot more for our chickens here than there. In fact, China (especially via Hong Kong) and Thailand exports over US$2 billion of poultry a year!

So forget about the export markets.

Real growth can only come from domestic growth in demand and prices.

[janner]

NZ chickens cannot compete with prices in Asia - one just have to go to countries like China and Thailand to know that we pay a lot more for our chickens here than there. In fact, China (especially via Hong Kong) and Thailand exports over US$2 billion of poultry a year!

So forget about the export markets.

Real growth can only come from domestic growth in demand and prices.

Very true.. Brought up on a chicken farm.. Feed and labour costs are the main inputs..

We can not compete in the international market..

May even be cheaper to import ..

[Beagle]

NZ chickens cannot compete with prices in Asia - one just have to go to countries like China and Thailand to know that we pay a lot more for our chickens here than there. In fact, China (especially via Hong Kong) and Thailand exports over US$2 billion of poultry a year!

So forget about the export markets.

Real growth can only come from domestic growth in demand and prices.

Very true.. Brought up on a chicken farm.. Feed and labour costs are the main inputs..

We can not compete in the international market..

May even be cheaper to import ..

I know very little about chicken farming but fortunately my biggest client is very familiar with the industry as his wife's brother is one of the biggest players.
He warned me to stay well clear of this "foul" float and said there was more creativity in the IPO documentation that in the Auckland Art Gallery.
All this talk of export markets was obviously just lipstick on a pig.

[Balance]

I know very little about chicken farming but fortunately my biggest client is very familiar with the industry as his wife's brother is one of the biggest players.
He warned me to stay well clear of this "foul" float and said there was more creativity in the IPO documentation that in the Auckland Art Gallery.
All this talk of export markets was obviously just lipstick on a pig.

Export sales went backwards last half year (some bs about transitioning in Oz) - but everything is solid as!

Enhance domestic market leadership position
Strengthen position in current export markets
Smart investment to reduce costs and improve efficiencies

Only problem is that profits went backwards and will continue to go backwards (re forecast update)!

[Filthy]

I don’t see chicken as much of an ‘exportable product’

most other countries already farm their own, so there is absolutely no differential for Tegal unless they can really push the “100% Pure NZ” (free-range? organic? grain fed?) angle

the real growth path lies solely within the domestic market via offering value added products

would love to see them really expand & stack their current range i.e. chicken-bacon, sausages, canned chicken, deli products, ready-made shredded packs, flavoured kebabs, plus +++++++ more etc etc etc (whatever the h3ll else their food engineers can create!!!)

presumably there would be much higher margins on these items rather than just competing on a drum-stick vs drumb-stick basis (where the cheapest price wins)

would also be interesting to see them get into something like pet food (which could be rebranded into something else to disassociate from the main T brand)

focus on your own backyard & vertically integrate the product & make it premium (rather than bothering about the overseas stuff)

good company & it’ll come right once they can unlock the potential

[janner]

[QUOTE=would love to see them really expand & stack their current range i.e. chicken-bacon, sausages, canned chicken, deli products, ready-made shredded packs, flavoured kebabs, plus +++++++ more etc etc etc (whatever the h3ll else their food engineers can create!!!)
[/QUOTE]

Nothing wrong with brain storming..

Much of what you suggest could only be profitable with mechanization (Canning).. Which will need capital and needs volume..

The rest need labour.. Which is expensive..