Of Bulls & Bears

Friday 16th February 2001

Affco goes from biosolids to 'organic fertiliser'

Affco is well known for its beef, lamb and other meat products but few know it also deals in worms. Its annual report says Affco is working with a company called Global Vermiculture to use worms to process the leftover bits of processed animals. Once worms have feasted on biosolids, the end result is organic fertiliser. "We see this process as an alternative to the land-based disposal of biosolids on farms which is acceptable under environmental and health regulations but has the potential to become an issue. We see considerable merit in vermiculture as a cost-effective alternative across all our sites," it says. Ferdinand presumes Affco could make a nice little sum from selling organic fertiliser rather than spending money on burying biosolid waste.

Montana hopeful have a long wait

Ferdinand has heard that some offshore investors in Montana, too small to be approached by Lion Nathan during its $4.65 a share buying spree of recent days, haven't given up hope. Their logic seems to be that partial bids are so transparently unfair to smaller investors, and have been banned in so many other countries for so long, that Lion will either be shamed or bullied into extending its offer to all. Such faith shows little understanding of the way things are done in New Zealand. Judging by past incidences of partial bids at premium prices, not least the offer by Japanese brewer Kirin for its controlling stake in Lion, and the hands-off approach of our regulatory authorities, minority investors will be waiting for many moons to get their turn at the trough.

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