Silver Ferm Farms

[percy]

From Silver Fern Farms Ltd latest set of accounts as per NZ Companies office.Note 11 is of interest to us.[Land value $18.13mil]

11. Current assets - non-current assets classified as held for sale
2019 2018
$'000 $'000
Land 18,130 -
Buildings - -
Plant and equipment - -
Total 18,130 -
Following the Group's announcement to close the pelt house at Fairton in August 2019, the Group plans to sell the farm
and processing plant at Fairton and has initiated an active programme to identify a buyer and complete the sale. The sale
is expected to be completed within the next 12 months.
Buildings, plant and equipment at Fairton have been classified as held for sale with a current net book value of nil.
.

[iceman]

From Silver Fern Farms Ltd latest set of accounts as per NZ Companies office.Note 11 is of interest to us.[Land value $18.13mil]

11. Current assets - non-current assets classified as held for sale
2019 2018
$'000 $'000
Land 18,130 -
Buildings - -
Plant and equipment - -
Total 18,130 -
Following the Group's announcement to close the pelt house at Fairton in August 2019, the Group plans to sell the farm
and processing plant at Fairton and has initiated an active programme to identify a buyer and complete the sale. The sale
is expected to be completed within the next 12 months.
Buildings, plant and equipment at Fairton have been classified as held for sale with a current net book value of nil.
.

That would be a substantial addition to the already very healthy cash position of the operating company !!

[percy]

That would be a substantial addition to the already very healthy cash position of the operating company !!

Having another memory lapse,!..Can't find where I read it,
Thought I read they were spending $17mil upgrading their beef processing plant in The Hawke's Bay.
If so the Fairton sale will either cover this cost, or go a long way to..
Found it.................
https://www.google.co.nz/url?sa=t&rc...Su8Q6b7Vim1Nfu

[Sideshow Bob]

Having another memory lapse,!..Can't find where I read it,
Thought I read they were spending $17mil upgrading their beef processing plant in The Hawke's Bay.
If so the Fairton sale will either cover this cost, or go a long way to..

While they don't release details by segment, beef would be responsible for a big chunk of their profit - so not surprised if spending some coin. There will be a bit of catch-up in terms of under-investment in plants in previous years when some lean years.

Puts them in a great cash position after retaining most of last years profits.

[iceman]

Having another memory lapse,!..Can't find where I read it,
Thought I read they were spending $17mil upgrading their beef processing plant in The Hawke's Bay.
If so the Fairton sale will either cover this cost, or go a long way to..
Found it.................
https://www.google.co.nz/url?sa=t&rc...Su8Q6b7Vim1Nfu

Thanks for this Percy. We are definitely well positioned with this one

[percy]

Thanks for this Percy. We are definitely well positioned with this one

Funny you should say that: I was thinking the same myself.............lol.

[percy]

http://business.scoop.co.nz/2020/08/...-year-on-year/

[iceman]

http://business.scoop.co.nz/2020/08/...-year-on-year/

Very interesting reading and numbers and very good for NZ Inc.
The numbers that surprise me the most from this are the strong numbers from USA & UK in June. But great to see this industry doing well. We need primary industries to do well to pull NZ out of the economic hole we're in right now

[Sideshow Bob]

Very interesting reading and numbers and very good for NZ Inc.
The numbers that surprise me the most from this are the strong numbers from USA & UK in June. But great to see this industry doing well. We need primary industries to do well to pull NZ out of the economic hole we're in right now

Much of that pricing was the tailwind that helped SFF last FY - African Swine Fever certainly had an impact, and historically 'disease' or something similar only provides a short-term boost and can create a hangover later (ie FMD, BSE etc). Companies swing into 1 market to follow the bucks and be competitive and ignore other markets etc etc etc.....

The other aspect would have been the dip in the dollar through Covid, when it got down to circa 0.56 USD. Money in the bank, especially when schedules were more reflective of Covid/feed, rather than currency/markets.

From what I understand, most markets going 'OK', China is OK without the price peaks from some months ago, but foodservice in various markets is battling - so high-end cuts like lamb French racks, prime beef cuts etc are difficult. Heard that some of the US retail is phenomenal.

Local supermarket last night - premium beef mince $18.99/Kg, beef tenderloin $24.99/Kg!

[kiora]

And PakNsave $19.99 for vaccum packed eye fillet from Greenlea ???