Recent comments by: balanced view

Grain of Truth

Realist do you really think that in a capital intensive business such as grain trading that a group of farmers will be able to sustain the business requirements for operating capital, let alone risk management and re-investment in feasible infrastructure. Grain Trading takes a lot of capital to operate and also takes a company that is not riosk averse to drive it.

Agribusiness

I thought growers wanted control of their facilities and the marketing and yet just sold of the last 8.7% of shares in Graincorp, now there is no control as a unified majority shareholder
It is a free market and if viterra was as stated not operating to stanards the door would be open for anyopne else, however economics will show that this year is not normal and the volumes are not normal and as such it does not make economic sense to set up duplicate storage and handling systems. Otherwise i am sure that some entrepenaur would have already done so. The S&H system has been deregulated for some time now.
In the end buying inputs farmers follow their pocket, this is what drives all business.
Good Luck to Agrium, the australian market is extremely low margin (lowest in the world) and very capital intensive.
Another player in the market that will have some capital clout able to fund expansion and maybe utilise some of the north american systems to benefit farmers. This will be good for competition and ultimately the Australian farmer.
Better 2 Australian companies than an overseas interest. Market forces will prevent pricing of grain handling increasing as it will allow competitors to set up and result in under utilisation of the existing assets.
funny how everybody wants to have everything at thjeir finger tips, this comes at a cost. Elders will recover and will have a focussed and streamlined business with a strong focus on its desired result, Rural Services. Aust Ag is in for a hell of a turmultuos time through rapid consolidation over the next few years. Strap yourself in

Cropping

There is more at play than air/gas - supply and demand play huge factors and a global deficit with other countries with deeper pockets than Australia. Considering Australia is less than 1.2% of global fertiliser trade we have little effect on the international market. Middle trades >$550 now so prices probably will go further.
Isnt this also monitored by the Essential Services Comission of SA? How much more monitoring is required, remember that in the end we all pay for these costs out of our pockets.
Reminds me of the days when no one wanted one of those motorised horesless buggies, now look everyone has a car. Look to the future at what can be offered open your eyes and embrace the change and the tools that are offered. It is not just about the traits that are offered or potential profitability but the whole farm benefit in improvement of management systems
Let me see, none of the aussie fert companies control the international fertiliser prices at less than 3.5% of world market very little influence could be exerted here. We are in a global market with global influences.

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