Can Alfalfa be the solution for the 13500 Acres of Agria ?
Quote:
Originally Posted by
Snoopy
The loan to LIC was due to be fully repaid last year. It was partly renegotiated at higher punitive interest rates, because Agria could not fully repay it. Granted this means that Agria did not default in terms of not paying anything back. But it was a 'technical default' in terms of being unable to fulfill the original loan agreement.
Yes, well sleuthed Agrainvestor. Agria does need more equity and finding a new investor would be one solution. It may sound a bit crazy but consider this.
The USA imports so much from China, there must be a lot of empty containers going back from the USA to China to keep bringing in that wall of manufactured goods. What if some of those containers were filled with forage, destined for Chinese farms? Ordinarily it would be uneconomic to do such a thing. But if the container space was available at a much reduced rental, maybe such a scheme could be made to work?
And now a quote from the Herald article, talking about a new combined seed company.
"Post the merger (and some prospective M&A activity in the US) PGG Wrightson would have less than one-third of the new company."
What was Lai referring to when he mentioned "prospective M&A activity in the US?". Could that be an oblique reference to bringing on board a new equity partner? If so that could explain why Lai sees PGW only owning one third of a combined seeds company in the future, when given the existing size of Agritech and Agria that one third shareholding would clearly be an unfair balance of power.
SNOOPY
>>Lai estimates this business could generate at least US$25 million in annual revenue by 2017 - rising to US$200 million turnover within 10 years and realising at least US$40-$50 million annual ebit.
<<
http://www.nzherald.co.nz/business/n...ectid=10875679
China is now the most important buyer of dairy cows worldwide. In addition, investors from Hong Kong and countries such as Germany and New Zealand are working to rebuild and improve China’s dairy industry on a much larger scale, which improves opportunities for U.S. alfalfa exports to China.
>>2011 it was increased to 177,000 metric tons despite record prices in California and other states.<<
>>In the first three months of this year(2012) nearly 97,000 tons of alfalfa in the U.S. were purchased for China’s dairy industry, which is more than half the amount that was bought last year.<<
>>According to data from the customs office, China imported 457,005 tons alfalfa during 2012, up 58.42% year on year; the monthly average import price was 396.45 US dollars/ton<<
>>Alfalfa is one of the world’s most versatile crops. It is grown in
environments ranging from burning hot deserts to cool high mountain
valleys, from the frozen continental climate of Minnesota, to the Mediterranean
valleys of California. Alfalfa can grow on soils ranging from beach
sands to heavy clays. It is grown as an intensive cash crop under irrigation,
or as a lower-intensity rainfed pasture crop in forage mixes.<<
Cost of alfalfa hay per ton =396 that means 457000 tons * 396$ = 180 Million US$
Agria has 13.500 acres of unused land
5 tons to 18 tons of alfalfa seems to be possible. With 13.500 acres it makes 80.000 tons at the lowest yield rate. 80.000 time 396$ makes 31 million US$.
Tons per Acre:
http://www.haytalk.com/forums/topic/...re-on-alfalfa/
Some information in general about alfalfa
http://alfalfa.ucdavis.edu/-files/pd...chureFINAL.pdf
I bought 5935 shares yesterday. After the message with the write off i sold 2/3 of my holding. I think now it was an error of me. (or mine, ****ing grammar)
Any thoughts about Alfalfas ?