Comvita - CVT

[Balance]

No, the high grades are not in short supply. I am a small commercial beekeeper. I have about 15 tonne of umf 15 and higher in storage with no Packers wanting to purchase. A big commercial honey storage company has 100s of tonnes with umf 10+ and higher with not much interest. The only honey being sold is from beekeepers who are so desperate to sell, that they will take any low ball offer.

Does not make sense then why high grade UMF prices are so high if there’s abundant supply around.

I used to buy Comvita UMF20+ 250g (as gifts when I did my Asian round) and they used to cost me $45 which I thought was outrageously expensive at the time! Now it’s over $100!

[nztx]

Stock turn once/year is horrendously low. Must mean some stock sits on the shelf for a long time. Means need more warehouse room required and extra cost of carrying it.
Lucky it has a reasonably long shelf life.

when the price drops - then red ink ? potentially a repeat of past history if so wiith CVT

High inventories and waiting the market out for demand to walk in the door - a potential
scenario for further disaster ? Where else have we seen similar plays ?

[winner69]

Banfield trying hard to find a buyer for the company but he really has to try harder as the share price continues to languish

Current share price just above 2 bucks and about the same as when Banfields appointment was announced

He's told plenty of good stories since he started but nobody (but hopeful share holders) seem impressed

Hopefully the Chinese are still interested .... other wise the rest of the year is going to get painful .... share price wise

C'mon David, try harder

[william67]

Essentially Manuka honey is just one kind of commodity such as coffee beans, cocoa beans, milk powder, beef, apples, or t-shirts, shoes, bags, belts, watches etc.

Harvested massive Manuka honey is bad news to some beekeepers, but to Comvita, means lower cost of ingredients. Comvita could use its premium brand to make more profit by higher gross margin.

I guess Comvita with its harvest model might pay a little bit more than current market price to its partners, and have to stock up more manuka honey in the last massive harvest season. In the short term it is painful, if not much free cash in hands ,but In the long term it is sustainable, everyone on this supply chain could make profit. We still have fresh memories that Comvita and Watson & Son all made big losses in the last few years.

The manuka honey industry would not exist if everyone was just fighting a price war, look around so many names in the field, they all price diffrently.

Nike can sell one pair of shoes at a much higher price than Kmart or Number One Shoes. That is ‘pricing’ power. Only premium brands can stand price war to some extent.
The price war in the manuka honey market happens all the time. The quality of manuka honey is much different under different names.

Bulk manuka honey export and different criteria for bottled manuka honey domestic and overseas are big holes in the manuka honey industry. That explains the chaos in the NZ domestic market and UK market.

Branding is a dangerous game, the precious gross profit might be wasted to achieve nothing in the name of branding or marketing.

[ralph]

Banfield trying hard to find a buyer for the company but he really has to try harder as the share price continues to languish

Current share price just above 2 bucks and about the same as when Banfields appointment was announced

He's told plenty of good stories since he started but nobody (but hopeful share holders) seem impressed

Hopefully the Chinese are still interested .... other wise the rest of the year is going to get painful .... share price wise

C'mon David, try harder

I think cvt is doing better than most in this bear market & is also placed well for the future when the bear goes back not like the product has a short shelf life is it .

[RTM]

http://research.iress.com.au/IDS/old...091850000&ppv=

May be of interest.

[whatsup]

I heard in todays national country programe that honey will be duty free in the near future into Europe, this should help with that export market, are there any other listed honey exporting companies that this also applies to ?

[percy]

i heard in todays national country programe that honey will be duty free in the near future into europe, this should help with that export market, are there any other listed honey exporting companies that this also applies to ?

mee...............................................

[ralph]

http://nzx-prod-s7fsd7f98s.s3-websit...953/375377.pdf

It seems these guys are looking /buying into a few companies on the nzx could be good for sales in china !!!

[Gerald]

http://nzx-prod-s7fsd7f98s.s3-websit...953/375377.pdf

It seems these guys are looking /buying into a few companies on the nzx could be good for sales in china !!!

No, read the disclosures. Just a change of name.