PGW - PGG Wrightson

[duncan macgregor]

quote:Originally posted by kittydashwood

MACD that statement is erroneous as the NZ dollar is the worst performing currencey in the world and oil is measure in US DOLLARS

KITTY you are dashing into the woods and cant even see the trees. The lower our dollar is the better our farmers like it, or dont you know that?. The NZ farmer in comparison to the average overseas farmer grows very little crops to feed his animals due to the climate. This means in simple terms that if the world price of fuel rises it raises the world price of produce giving the NZ farmer an advantage.
America for instance exports a lot of grain fed beef.
The price of fuel is not only governed by low or high dollars you have to take into account the tax take. Compare the price of fuel in NZ to the UK for instance you will find your arguement looses all credability. macdunk

[Deev8]

quote:Originally posted by duncan macgregor

Compare the price of fuel in NZ to the UK for instance you will find your arguement looses all credability. macdunk

Good point, except for the fact that farmers in the UK don't pay the retail price for diesel - agricultural diesel attracts a much lower rate of duty and tax.

[duncan macgregor]

quote:Originally posted by Deev8

Good point, except for the fact that farmers in the UK don't pay the retail price for diesel - agricultural diesel attracts a much lower rate of duty and tax.
[/quote]
That is exactly the point when you compare one countries advantages over anothers. You simply cant take one little part of the cost structure and ignore the rest to suit your arguement. I would think for instance the initial cost structure to start up and run a farm in the UK far exceeds what the nz farmer has to contend with. The average beef, milk, or even sheep farm must crop to keep things fed in the winter, much more than their NZ counterpart. Regardless of what price fuel is, it is to our advantage the higher it goes.
With cropping comes extra fuel bills, labour costs, plus cost of machinary, that we in nz dont have to put up with. macdunk

[Mick100]

quote:Originally posted by duncan macgregor
[ The average beef, milk, or even sheep farm must crop to keep things fed in the winter, much more than their NZ counterpart. Regardless of what price fuel is, it is to our advantage the higher it goes.
With cropping comes extra fuel bills, labour costs, plus cost of machinary, that we in nz dont have to put up with. macdunk

Your dead right Macdunk

NZ is one of the few countries in the world where animals are pasture fed all years round. Most of the supplementary feed is made from surplus pasture in the late spring so there is little need for cropping

That's a very good point - that rising fuel costs make NZ farmers more competitive in world markets.
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[Deev8]

quote:Originally posted by Mick100

That's a very good point - that rising fuel costs make NZ farmers more competitive in world markets.

Is that because our farm produce is transported shorter distances to reach their final markets?

[Mick100]

quote:Originally posted by Deev8

quote:Originally posted by Mick100

That's a very good point - that rising fuel costs make NZ farmers more competitive in world markets.

Is that because our farm produce is transported shorter distances to reach their final markets?

High value products such as dairy, meat and wool will not be disadvantaged too much by higher shipping costs. Low value products such as apples will be severely disadvantaged by higher shipping costs. Overall higher fuel costs will make NZ produce more competitive in global markets, or to be more accurate, will make north american and European Ag products less competitive due to much higher costs of production. The increased shipping costs of NZ products is insignificant compared to the increased costs of production that farmers in other parts of the world will have to bear.
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[Sideshow Bob]

quote:Originally posted by Mick100

quote:Originally posted by Deev8

quote:Originally posted by Mick100

That's a very good point - that rising fuel costs make NZ farmers more competitive in world markets.

Is that because our farm produce is transported shorter distances to reach their final markets?

High value products such as dairy, meat and wool will not be disadvantaged too much by higher shipping costs. Low value products such as apples will be severely disadvantaged by higher shipping costs. Overall higher fuel costs will make NZ produce more competitive in global markets, or to be more accurate, will make north american and European Ag products less competitive due to much higher costs of production. The increased shipping costs of NZ products is insignificant compared to the increased costs of production that farmers in other parts of the world will have to bear.
.

Likely the bigger pressure is going to come from 'food miles', especially in the UK. Link below:

http://www.bbc.co.uk/food/food_matters/foodmiles.shtml

Fonterra recently has been attacked on this front in the UK from a local butter company, where 30% of goods transported on the road is food & agriculture. Although shipping from NZ is probably more fuel efficient than trucking fruit & vege from Spain to the UK - shipping costs are probably only 25-40c/Kg.

[kittydashwood]

And when oil hits 100$ as Soros and co predict for next year?
Just how will that help Dunkle? As the NZ USD could be at .57
Triple whammy will only be averted by commodity prices staying high.

Interesting comments by Rod Oram on RNZ today suggesting Fonterra will be hard placed to lift their payouts past 5$ per share. Good to see PGW slipping into the Australian market.

(FROM THE INDEPENDANT)
PGG LAUNCHES IN AUSTRALIA


PGG Wrightson is expanding in Australia with the launch of a Melbourne-based real estate business to service the increasing demand from the New Zealand dairy industry for suitable properties across the Tasman.

[Mick100]

Another point worth mentioning is that the Asian countries are closer to NZ than European countries. The increase in demand for NZ's Ag commodities is going to come from Asian countries. The first thing that the people of developing countries increase spending on, as their incomes increase, is food. How many people in the developed world live on a couple of bowls of rice a day? - not many. NZ is in a prime positon to capitalise on the hundreds of millions of people in the asian countries who are going to lift themselves out of poverty over the next 20 yrs.
,

[duncan macgregor]

You are right on to it MICK. Nz is well placed for the chinese developing market. The lower dollar, plus the ever increasing price of oil will only help, not hinder profit levels for farmers. Kitty is talking a whole heap of rubbish if she thinks oil at $100 dollars a barrel will be a problem. Nz can produce farm products cheaper than almost every other country, roll on the price of oil as far as PGW is concerned.
When its time to move on macdunk is the first to pull the pin, i never fall in love with any company. Bought and sold this one a couple of times already, will probabely do like wise in the future. KITTY AMERICA is heading for bankrupsy, keep out of that market. MACDUNK