Silver Ferm Farms

[Sideshow Bob]

Certainly 2020 started out a much tougher this year - China effectively closed down for shipments through February, which is the peak of the production season. Lack of consumption through being closed through CNY and prices coming off the peak at the end of last year (but still at historically high levels). Now with distancing rules, plants are still operating under essential, but only at 30-50% because people can't stand in their normal place - cost of production would be relatively horrendous (and seeing schedules decrease despite better currency).

Europe and the US in lockdown, and their foodservice sectors are dead for the time being. Scramble for more into retail - but some cuts are unsuitable for retail.

I would fully expected after the start of the year that with their result they would have been as conservative as able.

2020 would be a record profit and plenty of tail winds - but can understand not paying a divvy until the Covid dust has settled. Alliance (their main competitor and next biggest company) only made about $9m net (YE 30/9). They'd be shuddering at a cashed up SFF, and ANZCO are coming off a couple of poor seasons/results.

It is clear though that SFF is a beef story and a China story. Alliance don't have a big beef share, so would be interesting to see what ANZCO (Japanese owned) and AFFCO (Talley-ban owned) make - as they are the next biggest beef processors.

Still, with the Co-Op, circa $100m shares on issue, makes $34m net = 0.34c per share. PE of about 1.6 at todays price. Historic performance counts against them, but could be worth a punt and not many (listed) vehicles in the sector. Just not sure on the policies and difference in treatment between being a supplying shareholder, and an ordinary shareholder....