Sharechat Logo

Forum Archive Index - February 2001

Please note usage of the Forum is subject to the Terms & Conditions.

 
Messages by Date [ Next by Date Previous by Date ]
Messages by Thread [ Next by Thread Previous by Thread ]
Post to the Forum [ New message Reply to this message ]
Printable version
 

[sharechat] Recomendation Buy AFFCO?


From: Marilyn Munroe <who.c@res.co.nz>
Date: Sat, 24 Feb 2001 19:17:50 +1300


The recent outbreak of foot and mouth disease in U K is a disaster for their farmers. The government has imposed a complete movement ban on livestock and a slaughter ban. This will cause a complete disruption to the U K meat industry until the foot & mouth outbreak is controlled.

There will be a dramatic shortage of edible protein. The alternatives are Tofu burgers or imported meats. This will make any old bit of scrawny mutton from N Z very valuable.
Any sales manager for a N Z meat exporter who has had the dumb luck to send meat to the U K on consignment (without a pre arranged buyer) will be dancing cart wheels.

The big gamble now is how long will this all last? If meat can be got away on the next boat and the epidemic is still raging when the meat arrives in the U K, bonanza! If on the other hand the epidemic has cleared when the N Z meat arrives, and the back log of animals for slaughter is surging through the U K system, nemesis!

So the dilemma for the investor is, will AFFCO participate in this gold rush, and if they do will the claim be worked out by the time they get there?

The best long term outcome would be if U K consumers already jumpy over mad cow disease started to question the economic logic of supporting European Farmers through higher prices and taxes.

Boop-boop-de-do Marilyn

* ---------------------------------------------------------------------------- http://www.sharechat.co.nz/ New Zealand's home for market investors http://www.netbroker.co.nz/ Trade on Credit, Low Brokerage. Join now. ---------------------------------------------------------------------------- To remove yourself from this list, please use the form at http://www.sharechat.co.nz/forum.shtml.

 
Messages by Date [ Next by Date: [sharechat] options table Teddy Wu
Previous by Date: Re: Re: Re: [sharechat] Brierley's G Stolwyk ]
Messages by Thread [ Next by Thread: Re: [sharechat] Recomendation Buy AFFCO? Paul.Menneer
Previous by Thread: [sharechat] options table Teddy Wu ]
Post to the Forum [ New message Reply to this message ]

IRG See IRG research reports