There are some stories that over the next
medium term period that AFFCO maybe the meat company to
replace Richmonds as the star performer in this sector.
Comments are that theyve cut costs a lot.
However, other than the dairy industry
(which currently isnt public) I dont kow of any primary
industry that has done well - because of the basic weakness
that they are price takers and not ever price makers.
And NZ price takers have higher base costs than do those in
latin america or eastern europe.
Maybe they're good for a short term trading
gain (because other than F & M they cant go any lower) but
it would really be a toss up between the casino and
primary industry shares - thats if you have a terminal desire
to waste money!!
Woff, woof - they use them to round up
sheep.
See IRG research reports
