https://farmersweekly.co.nz/section/...adage-payments
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Ouch .nasty
"More countries have joined China in banning imports of Brazilian beef following the discovery of two cases of mad cow disease.
The ABC reports that Russia, Indonesia, Egypt, Iran and Saudi Arabia have all joined China in ban either in total, from infected states or certain processing plants."
https://farmersweekly.co.nz/section/...l-meat-imports
Solid old volume gone through today at $1.09-$1.10.
293k traded, and to put in context, in the last 12 months only 2.9 million have been traded - 10% of the last years turnover in a day? Bulk of these in one hit? Maybe a new top 10 shareholder?? (Only need >268k shares).
Is Percy getting more "well positioned"?? Another good year in the offing??
Great day out on the water after lots of wind last couple of weeks.
You’re right it’s an all time high, reached a few months ago as well. I expect we will see an upward pressure in the last quarter of the year as farmers top up their holdings like happened last year to ensure maximum return from this great year we’re having 😀
Growth: NZ Beef exports, up 39 per cent to $299m year on year.
Exports to the top three beef markets all increased, with China up 89 per cent to $117m, the United States by
31 per cent to $102m and Japan by 31 per cent to $15 million.
Sirma Karapeeva, MIA chief executive, said volumes of beef exported during August were also historically high.
“A number of factors are contributing to tight global beef supplies. This includes herd rebuilding in Australia
and export restrictions in Argentina. New Zealand exported a total of 35,327 tonnes during August, which is 71
per cent higher than the average beef export volume for the month over the last 30 years. .
In early September, China halted imports of Brazilian beef, due to detections of atypical BSE in two cattle in
Brazil. This did not affect the August imports but it may have an impact on trade over the next few months.
Brazil is the largest beef exporter to China and our understanding is that the situation is not fully resolved yet."
.
Just one positive announcement,after another.I am getting used to them..lol
https://www.usx.co.nz/uploads/paperc...pdf?1633037734
Simon says they are ‘well positioned’!!
https://www.odt.co.nz/rural-life/red...r-solid-profit
SFF lifting minimum pay
https://www.stuff.co.nz/business/far...d-retain-staff
Main competitor expecting lift in trading profit.
Alliance to announce rise in trading profit | Otago Daily Times Online News (odt.co.nz)
Thanks for sharing this SB. I heard a rural report on radio yesterday saying all mutton is now being taken by China and prices are 5-6x higher than the traditional Pacific Island market for mutton.
The freighting availability and price continuous to be a major issue and will no doubt be a serious issue for a few years yet. But I heard the Fonterra CEO say that the Kotahi partnership is definitely helping Fonterra & SFF (and NZ exporters in general)
Mutton is forecast to be $5.70 - $6.80 for the coming months, based on Chinese demand. Great money for an old ewe!
Same with lamb, flaps now into China where in the past use to go to the Pacific Islands or PNG at a couple of bucks - so the 5-6x is about right. About 10% of the carcase. Now taking more forequarters and also other cuts such as heavy legs. Potential for a correction in the Chinese market though....
Go back further though and the skin and the pelt was worth more than the meat!! Now these are practically worthless.
Will be interesting to see stock/inventory and compare against last year (at end of FY). Alliance saying they have more stock than had anticipated.
Hopefully we start to see some share price strength towards the end of the year, especially as farmers look to share up - think they need to be holding at 31/12 to get the supplier rebate. All info is pointing that its been another good year, competitors (Blue Skies, Alliance) indicate stronger profitability, and markets are strong. Only paid out a small portion of the last 2 years profits as dividends, so has plenty of cash to reinvest or distribute.
Any hiccups in China with either the market or domestically is a risk. Prices are high, so always a chance of a correction, epecially when China takes 40-50% of our red meat exports. Global logistics are also a risk - I think they are better placed than most exporters with Kotahi, and getting product away, but cost is another matter.
Has been at that $1.10 level a few times, but would be good to see it bust through that. Otherwise, another good divvy in prospect.....
Yes I expect we will see SP firm up on slightly better volume pre-Christmas. All we are hearing from SFF and other in the industry, as you point out, indicates a bumper profit this year. Given they replenished the coffers last year and ripped into the share registry clean up, I am confident we will see a 7c fully imputed divie in April :t_up:
Company paid out $26.2m fully imputed last year - so $13.1m to the Coop. Dividend and patronage reward was $8.1m. Company kept the remaining $39.2m of NPAT.
Understand the need for the Coop to build their reserves, and a buffer for any rainy days ahead. Spent a bit on redeeming those shares, and should be good for remaining shareholders, and for NTA/EPS etc.
Would think potential for a stronger payout ratio and larger dividend. 7c equates to circa $7m - sure they can afford at least that! :blush:
Sideshow Bob and Iceman.
Stop it please guys, you are getting me over excited.........................lol.
Sorry about that. I'm just dreaming that we will get no less than 7c fully imputed as it would mean I've got 1/3 of my money back in dividends (& imputation credits) in just over 2 years, in addition to the 50% capital gain.
Nothing like a boring old meat company eh !
The good news continues.
New Zealand red meat exports soar by 28 per cent for third quarter
Beef exports top 100,000 tonnes in third quarter for first time
New Zealand’s red meat exports rose 28 per cent to $2.2 billion for the third quarter
compared to the previous year, according to an analysis by the Meat Industry Association
(MIA) .
Th e increase continued the trend of strong growth for the red meat sector in recent months
with September exports alone reaching $64 2 million.
The major markets for the third quarter of the calendar year were China, with exports up 57
per cent to $830m, the United States, up 3 5 per cent to $542m, and Japan, increasing 61 per
cent to $109 m.
Beyond Meat struggling.....
Beyond Meat (BYND) Q3 2021 earnings miss (cnbc.com)
Have heard of a few issues with China importation. Chinese govt still pursuing Covid elimination, and still on that frozen food is a risk. Dalian is apparently stopping imports of frozen or something similar. Much of NZ's lamb exports to China go through Dalian. Looks like different provinces have applied Govt mandates differently and Liaoning have been the toughest.
Could be a bit of a circuit breaker for a reset of market levels, which have been pretty lofty.
Hugh risk for plants/companies with their Chinese listing is they have a case of Covid at plant. Will then get delisted for China, and especially for lamb would be wholly uncompetitive without this. Might as well shut up shop. Seems like MPI are not really proactive in the situation either.
Still not really into the main season yet, but would be a concern if continues or escalates.
Thanks SB. Interesting. China is indeed very strict. I know with fish, every crew member needs to have a negative test at arrival in port before product destined for China can be loaded into containers. Even after 40-60 days at sea. 1 positive case and China accepts no product from that ship.
Plenty of trades the last week or so at $1.10, but (a relatively) good number through today and looks like sellers have been cleaned out. Only 56 on offer at $1.10.....
Will we see it finally push through $1.10 soon, and an ATH????
Now 51,000 on offer at $1.10. :confused:
https://farmersweekly.co.nz/s/fw-art...TGGZ2COEKF5FSE
Bodes well for SFF, especially given relative performance over recent years.
Deleted ..............
With strong markets, large processing share of the beef market and likely better logistics with Kotahi, then would definitely expect another strong result, with the year ending 31/12.
Hopefully we see buying support from farmers (and others) leading up until Christmas - returns for farmers would have been fantastic over the last couple of years once included the supplier premium (plus of course capital growth and ordinary dividends).
Potentially it is the 3rd year of excellent profits, and still trading at a PE of under 3.5.
Would mean they essentially earned their market cap in the last 3 years........!!! And a good chunk of the cash has stayed in the business.....
The prices and general market conditions seem pretty favourable in Simon Limmer's newsletter this week. Been trying to post a link to it but something goes funny with it !
But basically both beef & lamb prices are up on the good prices last year, quite significantly. :-)
Farmers Weekly November 29 2021 by Farmers Weekly NZ - Issuu
Page 27 - Sword hangs over strong markets
This seems too good to be true almost. Does anyone have any theories as to why the price is so low relative to earnings? Is it just because it is on the USX?
Additionally, with the PE so low where is all the cash going that the dividend yield is only ~6%?
I’ll have 1st crack….
The structure of the company is probably a major part of it. You are actually buying shares in the Coop, which investment or asset is 50% of SIlver Fern Farms Ltd. The other 50% is owned by Shanghai Maling, part of Bright Food that also owns a large chunk of Synlait. Shares have been on the USX well before it sold the 50% to BF. The Coop has half the board of SFF Ltd.
Originally the Coop was $1 in, $1 out so holders never got any value from the capital growth of the company. Way back in time, shareholders only had a maximum of 10,000 shares, so $10k - and the small farmers had the same amount as the large corporate farmers.
Primarily being listed on the USX it is more for trading of shares in the Coop and allow the ‘market’ to decide the value. Still illiquid and less than 3m shares traded in the last 12 months - so only 3% of the company…...
Some of the profit is paid out as dividend per share, and there is also a patronage reward paid out to shareholders who supplied livestock. So last year if you supplied livestock, you got 11.2c per share!! Livestock supply is the life blood of the business, but even at todays price, farmer shareholders get competitive livestock price and based on last FY Divvy, 10% return on your share money. They do want to encourage more farmers to take up shares and then for that livestock supply to become a little more "sticky". Consistent profits and patronage rewards will again help this and I see as a little as a self-perpetuating circle....
There has been a little noise about ‘dry’or non-supplying shareholders and whether they might be limited in number or similar. Nothing seems likely in the short-term - just need to be aware. The dividend policy previously hasn't been well defined and how they treat supplying holders and dry holders.
Historically the company has performed fairly averagely (to be kind) with debt being a large factor in this, particularly after protracted/agressive/unwelcomed takeover of Richmond in the early 2000's that ended up costing them too much and also lost a decent amount of farmer supply from it. With the 50% sale to Shanghai Maling, the business became free of any long-term debt - which really was a noose weighing it down.
The company has started to perform well in recent years. The last couple of years they’ve made $65-70m and what I can see very likely to make another strong profit this year. This is from comments made so far by the company, but also looking at other meat companies recent announcements like Blue Sky (USX) and Alliance (Farmer Coop), that have had an increase in earnings this year compared to last. From my perspective, SFF just seem to be doing their thing, well run and in a reasonably good space currently.
Much of the profit has been retained in the company. FY2020 they paid out $26m of $65m, so $13m of the total dividend went to the Coop. Circa 100m shares/13cps, so paid some out, paid out the patronage reward and kept some.
The profit history has probably been a part of it, but 3 very good years in a row is starting to put some serious runs on the board.
I understand they do want to make the Coop self-sustaining financially and not reliant on divvies from SFF Ltd. So some of the funds have been retained. They’ve also been cleaning up the share register with small/lost shareholding’s - which is good for remaining holders.
Last year, they delayed the divvy due to Covid like many companies, and then would have been reasonably conservative. This year divvy was up slightly.
They don’t report a half-year, or announce any earnings forecast etc, which I think doesn’t help the price or awareness of the company as an investment.
Not sure how much money is kept within the business as cash or been spent on capital works etc. Many of the plants suffered through lack of investment, with just necessary R&M going back in time. So a bit of a catch-up over the last few years. Not sure what capital spend they have planned for the future.
There isn't alot of "growth" out there in terms of plants/livestock numbers, without acquistion or the like, and don't think they have an apetite for that, especially with the history, and would likely face regulatory issues. Any growth will likely come out of extracting value of what they have - rather than just more. The company in recent years has focused on their brand and meat - and had JV's in the likes of rendering. So expect them to push more into a few of these areas.
At some stage they may start to spit out more cash, and the more consistency in profits, the more the market will notice. Pretty easy to work out the profit and earnings per share - $65m 50% to Coop, $32.5m, 100m shares, about 32c eps.
When look at the balance sheet, can probably question the value of an old meat processing plant. But currently so undervalued on this also - about $3.20 per share for $1.10.
Most of the posters bought in the $0.60’s and enjoyed about $0.11 in fully imputed divvies and seen holdings appreciate by about 50%.
The company is facing some challenges (like many NZ primary industries) - Covid, labour, carbon farming, move away from meat for environmental reasons, shipping/logistics, emmissions, water treatment etc etc.
However I think there is more upside from here. It is illiquid, and (I think) $1.10 is a all-time-high but the fundamentals remain compelling, there is a big safety margin and one for a long-term hold.
Sums it up nicely SB. This one certainly has the potential to be a good dividend payer with the last couple of years having set the Co up well financially, free of debt with money in the bank. Very much undervalued and a great long term hold in my view
Discl: a fairly large holding
I've added a few comments earlier today, and also added a comment just now dividend policy.
Looks like shipping issues are going to be to the fore again through this summer/autumn, and could be more challenging the last season. More expensive for sure!!
Will be interesting to see stock levels at YE compared to last year. I think they will still see alot of disruption with services, container supply, port calls etc - but have the feeling that they will be better placed than most with Kotahi. Alot of companies can't get space on Maersk - so expect will be going Kotahi's way, and a good portion to their shareholders.
Alot of industries will be hard hit and difficult times when the lack of options/availability to export.
$1.10 cleaned out this morning. Been around this level for quite a while, and think this is an ATH.
Currently next offer is $1.15.......
Maybe Monarch is getting on board?? :p
Beef + Lamb New Zealand and Silver Fern Farms Collaboration Increases Sales in U.S. Market
Beef + Lamb New Zealand (B+LNZ) and Silver Fern Farms are celebrating another year of successful joint marketing efforts in the United States. The partnership, which included a series of seasonal marketing campaigns, outdoor advertisements and creative brand programs, resulted in significant sales growth and increased awareness.
American appetite for grass-fed sustainably raised New Zealand beef and lamb is growing. Lamb and beef exports to the US have lifted by 41% and 5% respectively compared to the 2019-2020 season, with chilled beef lifting by 62%. To build on the momentum in the U.S., B+LNZ and Silver Fern farms crafted several campaigns designed to capture the hearts and appetite of ‘Conscious Foodie’ consumers.
Just last month, the organisations wrapped a three-week joint campaign designed to promote New Zealand grass-fed beef via the Silver Fern Farms direct-to-consumer e-commerce platform. Promotional tactics included curated 100% Grass-Fed New Zealand beef bundles, a product offer, paid digital media, social media, email marketing and an online influencer campaign. As a result of the collaborative campaign, Silver Fern Farms saw a 247% increase in website traffic, a 291% increase in beef products sold and a 254% increase in beef revenue.
I know this one is exciting and very rewarding to hold, just make sure you don't get too excited about the upcoming huge dividend and the potential rerating upwards in SP :)
I suggest a daily dose of Aiora Vascular & Vision to keep the bloodflow going strong :t_up:
From Simon Limmer's newsletter today, full of good news, including this little gem :-)
From China:
The Best Restaurant Awards was held in Shanghai lastweek.The Best Restaurant Awards Ceremony brings together a group of discerning Chinese gourmet consumers and judges.There were over 15 restaurant
and special awards presented for ingredients,brands and chefs with Silver Fern Farms Reserve Beef presented with the“Ingredient of the Year”award,in recognition of its premium quality.
We are honoured that our Reserve Beef has been recognised as the ingredient of the year.This affirms the quality of our products and indicates their growth potential in the Chinese high-end food service industry.Our Reserve Beef has been in the Chinese market since 2014 through high-end food service channels and we are building a strong reputation with discerning Chinese customers.
Down to only 144 available at $1.18
Quite a large volume at $1.20 offer. About 170k.
If a supplier, then buying now for a likely 10% cash back in April....
Labour shortage; challenging processing season ahead | Otago Daily Times Online News (odt.co.nz)
Silver Fern Farms — which is about 550 workers short across its network — says this peak season will be one of its most challenging to date.
While strong demand was generating healthy farm gate pricing, risks included logistics challenges, Covid-19 and labour shortages which threatened to unsettle that, general manager supply chain Dan Boulton said.
Some farmers have raised concerns about difficulties getting enough space for lamb weaning drafts and citing the potential flow-on effects from that.
Mr Boulton said processors and industry bodies have been signalling sector labour shortages in advance to suppliers to help avoid disappointment.
"Labour shortages are impacting right now and South Island lamb suppliers in particular will need to plan for this. Wait times for South Island lamb processing will likely to be 10-15% worse than last season and we expect these will continue through until March 2022.
"We strongly recommend suppliers get in touch with their livestock rep early to plan their bookings in advance," he said.
Accessing skills labour in the processing sector was becoming more difficult each year and this season had not been helped by low unemployment levels and stringent immigration rules, Mr Boulton said.
The company had various initiatives under way to help address the labour shortages, including raising its minimum productive rate by 10%.
Alliance Group general manager livestock and shareholder services Danny Hailes said livestock flow and processing volumes needed to be carefully balanced with the ability to ship products to global markets and Alliance was working hard to minimise the impact on farmers.
It would bring on additional processing capacity across its plant network over the coming weeks, however, like all companies in the sector, it was constrained by labour shortages and the global supply chain issues, Mr Hailes said.
The fifth chain was coming on at its Lorneville plant in Southland and the company was recruiting for the sixth chain, but that was subject to labour availability.
To avoid putting undue pressure on cool stores and shipping, Alliance was only taking livestock from shareholders. It was also asking farmers to keep in touch with their livestock representative and encouraging suppliers who were not shareholders to become shareholders, he said.
ANZ’s latest Agri-Focus report said processing new-season lambs was getting under way but it had been a slow start to the season. Poor growing conditions and low pasture covers going into winter resulted in a challenging spring in many regions. The surplus of pasture arrived a little later than normal and that had kept lamb growth rates in check.
New Zealand red meat exports increase by 27 per cent
The value of New Zealand’s red meat sector exports reached $693 million during October, a 27 per cent increase year-on-year, according to an analysis by the Meat Industry Association (MIA).
Sheepmeat was a standout performer with the value increasing by 25 per cent to $309m. The major sheepmeat markets by value were China, up 25 per cent to $131m, the United States, up 54 per cent to $46m, and the Netherlands, up 94 per cent to $29m.
Sirma Karapeeva, chief executive of MIA, said a mixture of supply constraints and good demand in key markets had contributed to the high sheepmeat prices. These factors included Brexit-related issues and Australia rebuilding its sheep flock.
“The average Free on Board* (FOB) value for sheepmeat exports for the quarter was $12.52/kg,” said Ms Karapeeva.
“This was a record level and the first time that the average monthly FOB value has been above $12/kg.
“Value growth in our key global markets was across the board, with beef up 28 per cent to $231m and co-products increasing by 30 per cent to $153m.”
Overall, the value of China’s imports of New Zealand red meat was up 34 per cent to $262m, the United States by 47 per cent to $138m, Japan by 29 per cent to $31m and the Netherlands by 76 per cent to $30m.
UK sheepmeat exports to the EU have been affected by Brexit, said Ms Karapeeva.
“Most of the United Kingdom’s sheepmeat exports - around 90 per cent - normally go to the 27 European Union countries but its exports to that market are down 24 per cent so far this year.”
*Free on board – the quoted price for the goods delivered to the ship for shipment
ENDS
Thanks SB & percy. Have been catching up and very pleasing to see a continued steady upwards push on SP as expected by year end with suppliers topping up their holdings. Sharesight telling me total return in this financial year is 43% so far, following on from similar growth in the previous one.
The demand and prices have been great and continue to be so but serious issues with freighting & staffing affecting the industry. SFF well placed with the Kotahi shipping partnership which should see decent reliability of shipping & container availability but prices seriously inflated.
In the long term, hopefully the result in this industry from these serious labour shortages (as well as other primary industries such as fishing and horticulture), will be much more automation.
Meanwhile, we just have to enjoy the ride and the huge dividends in this still seriously undervalued stock. It beggars belief the SP does not start with a 2.
My biggest concern is that if the SP continues on a bit further, this holding will reach 30% of mine & wife's combined portfolios. But on second thought, that doesn't worry me at all :-)
Farmers Weekly NZ December 13 2021 by Farmers Weekly NZ - Issuu
Page 27.
Opinion piece looking at Alliance's result, and prospects for the wider industry profitability. Saying good returns from Lamb Co USA, in which Alliance own just over 50% , with Anzco and SFF the balance. The US operation has had an outstanding year from what I understand - but like alot of markets starting to come under price pressure going into 2022. So any divvy will show up in SFF's result, just not as meaningful as to Alliance, as SFF have about half the shareholding and SFF circa 50% bigger turnover than Alliance.
But this is the bit I like: :)
Attachment 13319
The buyer of 60,000 at $1.16 just raised his bid to $1.18.
Perhaps trying to get in before the end of the year and get the patronage reward.....
Toitū Envirocare celebrates sustainable business | Stuff.co.nz
4. Toitū Brighter Future Award for Climate Action in the >50,000 tonnes organisation category
WINNER – Silver Fern Farms Limited (Toitū carbonreduce certified organisation)
Reduced 19% of its operational carbon footprint since achieving Toitū carbonreduce certification in 2019.
Yes,however a seller has appeared with 20,000 to sell at $1.19.
The support level is very strong at $1.15.
So in a channel between $1.15 and $1.20. With the share price on a very strong overall up trend I expect the $1.20 resistance will be broken sometime 2022.Perhaps as early as beginning of March.
I do note that the share price did stay steady from mid December 2020 to end of February 2021 at 80 cents.
Well we have run out of sellers.?
Silver Fern Farms chief executive Simon Limmer says the company plans to expand its carbon-zero offering beyond beef to also include lamb and venison.
https://www.stuff.co.nz/business/far...cid=app-iPhone
The last comment from Simon is key - "There is only one direction of travel for our industry and Silver Fern Farms wants to be out the front leading".
Good to see and again another step in front of domestic competition. Part of this will be the recognition that free-range, extensive NZ agriculture is/can be a sustainable source of protein.
Alot of it is based on the fact that many NZ farms are carbon positive, sequestering more carbon than what they emit. The First Carbon-Zero Farm in New Zealand | Toitū Envirocare (toitu.co.nz) I don't think Lake Hawea Station is anything particularly special as a farm compared to other Kiwi farms (apart from the owner having more cash than average).
Policies undermining instead of promoting NZ farmers | Otago Daily Times Online News (odt.co.nz)
Don't want to start a debate on global warming and meat/dairy ruining the world, but enough of this carbon farming bull****, and productive NZ farms going to pine trees never to be cut down and creating other problems for our environment. Grrrrrr......I think I'll shut up now......
Maybe talk about fossil fuel fertilizers, palm kernel, polluted rivers, distance to markets, animal welfare. That will do to start with.....
NZ farmers are trying to pull the wool over the eyes of consumers.
"Carbon zero",when mostly all you have done is buy carbon credits to off set theirs.... load of BS.
I suggest you look into the work SFF is doing in this field. As far as I can see, they are genuinly trying to make a difference to processes to achieve much lower carbon footprint and are NOT just buying carbon credits. They are well aware of the increasing number of customers that take these issues seriously, particularly in the USA for SFF, so it is a logical business decision to do this.
Credit where credit is due.
You´re outburst may be better directed at the Government that went to COP26 with a great plan to buy lots of carbon credit overseas !!!! But that´s not a debate for this thread I suppose :-)
From a recent Stuff article:
""Climate position 'a sham'
The party's old guard isn't happy either.
Former party co-leader Russel Norman, speaking in his capacity as head of Greenpeace New Zealand, says Shaw's position as climate minister is "highly problematic".
He called the nationally-determined contribution to reduce carbon emissions Shaw took to the COP 26 climate conference in Glasgow in October "a farce".
"It's just a sham. Almost all of it is being met by these offshore carbon credits, so it's obviously farcical. You can't say you're serious about climate change and then pay other people somewhere else in the world to cut emissions," he said.""
I said "mostly buying carbon credits", not "Just buying carbon credits".
I have no doubt SFF are doing a lot of work in this area. Lots of companies are, they have to, to stay abreast of the competition out there.
There is a lot of "green washing" going on, this Labour government is not doing anything like it promised regarding climate change.
My point is that if you are going to promote your product as truly "carbon zero", it really will need to be genuine, and I just don't know how long NZ can get away with "off setting carbon" like this, besides all the other known environmental issues.
Agree BDL, there is alot of "greenwashing" going on with various companies and entities, and is one of my pet hates. As is off-setting, especially overseas companies buying land here for planting (or NZ buying credits overseas to meet what the govt has committed to). Also agree re the current government, they are just tinkering around the edges, however I think only way out of the carbon/global warming issue is changes in technology. Especially with expanding global populations.
I don't think someone like SFF would be going down this road unless it was absolutely genuine. It is backed by an outside agency, and the likes of the link I posted earlier the farm is carbon positive - so sequesters more carbon than it emits (according to their certification). Initally expect it will be a very small portion of their production and a bit of a trial, and if was being cynical, something for a bit of positive PR.
Farming has been measured by their carbon output only, and not their net carbon position - ie the difference between what they emit and sequester. The downstream processing/transport is more difficult currently to be carbon neutral, but many processors have already taken steps to reduce coal use, water use etc. However still more to be done though, both on farm and in processing.
Think a supplier would have had to be on the register by 31st December 2021 to qualify for patronage rebates.
Since then we have seen trades between $1.16 and $1.20.Majority at $1.20.
Today 22,000 have been traded at $1.19.
Quotes are now buyer for 6,206 at $1.15 and seller of 8,000 wants $1.19.
Positive.
Indeed, positive. Not reason why the share price shouldn't remain strong.
Still lined up to make another sizeable profit for the FY just ended 31/12.
At last years result, about $0.325 EPS, PE less than 3.7 and another year to add to the growing record of solid profits. Hoping might be a bit better than last year......
Only paid out a small portion of their profit in dividends last few years. Quite a bit has been reinvested in the company with capital expendiure. Some changes on some of the downstream products that should improve prospects for the season ahead.
At some stage should start chunking out cash......
Some interesting comments from Keith Woodford.;
For the last 12-month period to September 2021, New Zealand ran a record deficit on its external current account with the rest of the world of $15.9 billion. This is in part because earnings from export services, largely tourism and the education of foreigners, have crashed. Conversely imports have ballooned to record levels.
This deficit has been financed by capital flows from overseas. At some stage the rest of the world is likely to question the economic sustainability of New Zealand. If that occurs then the exchange rate will crash.
If the exchange rate crashes, then that will be very bad for most New Zealanders. The exception will be for those New Zealanders who produce products for export.
A significant decline in the exchange rate may be what is needed to convince New Zealanders that export industries lie at the heart of our national well-being.
Short Sellers Are Targeting Beyond Meat (BYND) - Bloomberg
Short sellers are piling into Beyond Meat Inc., making it the most shorted company in the Russell 1000 Index, as the shares struggle to gain momentum amid growing competition for plant-based meat.
Later in the article.........
Beyond Meat and the plant-based meat category as a whole are facing a more difficult outlook, as it appears the products will reach far fewer American households than initially projected, according to a recent note from Peter Galbo, an analyst at Bank of America Corp. Galbo said that consumers “develop more habitual routines when using plant-based dairy” as opposed to Beyond Meat’s products, which are consumed less frequently.
A healthy turnover today with all shares on offer taken out at $1.20
Nothing for sale at present. I am not surprised, given the jitters in the sharemarkets at the moment, that people seek to put money into this much less volatile and seriously underpriced stock that is pumping out fully imputed dividends.
I'm looking forward to seeing the FY report.
Demand drives record prices.
Farmers Weekly NZ January 24 2022 by Farmers Weekly NZ - Issuu
Headwinds with shipping and labour, and now with omicron.
Yes well, maybe not.???
Here's is a comparison with another meat company listed on USX,using both company's Issuer profile
....................................eps........... .PE.........Yield..............share price.
Blue Sky Meats................05............26..........3.8 46%...........$1.30
Silver Fern Farms............3176.......3.936.......6.08%..... ........$1.25
Should SFF trade on the same PE as BLU its share price would be ...wait for it.......................$8.25..
Even on a modest PE of 8 SFF share price would be $2.54..
Not a lot of people know that.........lol.
Just as my excitement was building as SFF reached and was trading at $1.25,
So far today 81,653 traded at $1.16 and there are still 13,449 for sale at $1.16.
Essentially that plant-meat has been struggling of late, and companies like Beyond Meat and Impossible Burger have underperformed and seen their share price hammered.
After the initial hype and trial, sales have been disappointing, but some experts think it is in the "trough of disillusionment" as part of the "Gartner Hype Cycle" when the initial fizz and hype has gone out, and people have trialled with expectation, but largely disappointed. Electric cars, mobile phones etc all gone through the same cycle, and current stage usually means company failures, industry consolidation and product improvement before mainstream adoption.
I think that they will come again - there is probably a place, as population increases and growing wealth in developing countries - which historically means more protein consumption. Western consumers haven't taken to it like they have to plant based milk alternatives yet. Consumers definitely not liking the long list of ingredients, being heavily processed, and in some cases including GM ingredients. Even in NZ meat consumption per capita is declining - although we are above average in world terms.
I'm so not convinced not eating meat will solve the climate "crisis". Undoubtedly there will be developments in breeding, feeding etc to reduce particularly methane output. These fake milks/meats often aren't as green as many think. The ingredients still have to come from somewhere.....
The other important aspect is that typcially they don't have the same nutritional profile as the real thing, and then compare the nutrition vs carbon emmissions.....
Page 23 - "Planning for Omicron".
Again demostrates how many companies have been let down on RAT's, MIQ and seasonal workers.
Farmers Weekly NZ January 31 2022 by Farmers Weekly NZ - Issuu