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Thread: AgriBusiness

  1. #1

    Default AgriBusiness

    Hi guys,

    I successfully used the November 2008 period to load up a lot of bottom drawer stocks in energy sector. These are for the future - I simply hold until the cost of unleveraged ownership has increased by 100% and then halve my holding - stick the result in my bottom drawer for the future.

    Usually I used my profits from other trading activities to fund these small purchases.

    Right now I perceive is a good time to do the same for agribusiness stocks: especially the grains and have some spare trading profits to go into this idea.

    So_Cynical provided a good starter list in another recent agr thread:

    Quote Originally Posted by So_Cynical View Post
    U can get exposure to some of these commodity's via the listed company's involved in
    there harvesting, marketing and or production...here's a few off the top of my head.

    • Sugar - MSF Maryborough sugar Factory
    • Milk & cheese - WCB Warrnambool Cheese and Butter
    • Beef - AAC Aust agricultural company
    • Wheat - AWB Awb Limited
    • Cotton - NAM Namoi Cotton
    • Vegetables - WBA Webster
    But that thread was about investing in commodities directly - I don't want that so I thought would start a new thread. I want leveraged exposure to agr commodities prices through unleveraged holding of Australian stock.

    I am not interested in Australian cotton or rice stocks - to me these are unsustainable sectors for our country. But I am interested in wheat, sugar, beef, hogs, vegetables, soybeans, corn, etc.

    If you have any interesting stocks you would like to add to the above list - please do so! Otherwise I will be researching what seems to be a rather lonely path by myself.

    A low or 0% debt equity ratio is important.
    Last edited by sinner; 20th-January-2010 at 09:21 AM.
    Disclosure: Long cash, gold, stocks.

  2. #2

    Default Re: AgriBusiness

    After conducting some preliminary research on the ASX site it doesn't seem that there is much in the way of stable agribusiness companies without a lot of debt on their books!

    Maybe I am looking in all the wrong places?
    Disclosure: Long cash, gold, stocks.

  3. #3

    Default Re: AgriBusiness

    Tassal - TGR

    I don't Hold them at the moment, But they are one I have been watching for a while.

    They have about 34% debt to equity, So thats resonable considering the growth and expansion activities in the last few years.

    Basically they are in the business of turning pellets made of grain and protein into high qualty salmon products.

    They have a few good videos on their website if you want to see their assets in action.

  4. #4

    Default Re: AgriBusiness

    Here is a link to the page with the videos about tassal.

    Quite interesting


  5. #5

    Default Re: AgriBusiness

    Don Coxe is a big fan of agriculture as an investment theme. He does a weekly webcast which is sometimes worth listening to http://events.startcast.com/events6/...=1&BitRate=16A

    His view is that the best way to play the ag sector is in the input stocks (ie seeds, fertilisers, tractor makers) rather than the end producers ie wheat growers. I'm inclined to agree, I suppose its a similar argument to the shovel makers and miners. Another option to consider....

    Holding IPL so am biased

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