Forum Archive Index - November 2000

[Marilyn Munroe <who.c@res.co.nz>]

Buy AFFCO, a publicly quoted meat processor with several lamb packing plants.

To find out why follow this link;

http://www.itn.co.uk/news/20001101/britain/05bse.shtml

New Zealand is free of the sheep disease scrapie. I have a vague recollection that there was an outbreak of scrapie in the 1950's, on a farm on the Volcanic Plateau.
After the outbreak in the recently imported animals they were immediately destroyed, buried, and pine trees planted on all pasture that they had grazed.

It is my hope that this fiasco finally destroys public support for the common agricultural policy. How long are European Union consumers going to continue to support their farmers with taxes when all they get in return is poisoned food? Will this hasten the day when clean green N. Z. agricultural products can enter the European Union without restriction?

Perversely in making this buy recommendation I will be reluctant to commit my own cash to this industry. I have lost a lot of money over the years waiting for the meat industry to create shareholder wealth (Waitaki Fortex), so I am a bit gun shy. For example Alliance is paying its 1st dividend for 10 years shortly. What I am saying is things are looking up, but over the years the meat industry has been an investors graveyard.

The worst outcome of an improvement in the meat processing industry would be to increase the comfort zone for the farmer owned co-operatives. This would allow them to once again put off the restructuring that has been required in their industry ever since Roger Douglas kicked away the crutches supporting the agricultural sector.
 

Boop-boop-de-do Marilyn

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