Duxton’s Agri Bits and Pieces Vol. 162

QUOTE OF THE WEEK

DuPont Co Executive Vice President James Borel, who oversees the company’s production agriculture businesses, said he would invest in the work he is excited about as DuPont looks for ways to help increase food production.

“Personally, I would buy DuPont stock, but I already did that,” Borel said. “I would invest it in production agriculture and technology for production agriculture.”

Meanwhile, Mike Wilson, CEO of fertiliser and agribusiness Agrium Inc, said commodities are looking like a pretty good play. Further noting that’s it’s important to be wary of the source of the opportunity, citing Chinese demand as a particular area of concern.

http://goo.gl/qJas7u

Line

CHOCFINGER: COCOBARON SELLS STAKE IN TRADING BUSINESS FOR PRICE OF A MARS BAR

Anthony Ward, the cocoa trader known as “Chocfinger” for a string of audacious deals in commodities markets, has been forced to sell his London-based cocoa, coffee and sugar trading business for just $1.

Mr Ward, who in 2010 shot to prominence for buying a large amount of cocoa stocks in a strategy that sent prices to a 33-year high, will receive less than 50 cents…

Read More

Duxton’s Agri Bits and Pieces Vol. 161

QUOTE OF THE WEEK

On December 2nd Reuters reported that the Australian Government blocked Archer Daniels Midland’s (ADM) bid for Australian agricusiness, Graincorp. Australia is the world’s second-largest wheat exporter and GrainCorp is its largest-listed grains company. It dominates east coast storage, distribution and marketing of grains, handling 85 percent of that region’s exports.

Scott Weldon, director research and trading at Duxton Asset Management in Singapore, said the bid was rejected on “potentially reasonable grounds” because of GrainCorp’s national strategic importance and dominance in the market. “We would hope this does not reflect a change for policy affecting smaller foreign investments into the agricultural sector,” Weldon said. Duxton manages around $430 million in agricultural assets for its clients.

http://goo.gl/JMqG5k

Line

AGRI M&A HEATING UP DOWN UNDER: TANDOU’S ACQUISITION ONLY HALF THE STORY

This week, ASX listed agribusiness, Tandou Ltd announced the acquisition of a 7450Ha property near Hay, in the Murrumbidgee irrigation district. The property, known as “South Farm”, currently has 3200Ha developed for irrigated row cropping as well as 12,500ML of water storage capacity. The property is the third owned or operated by…

Read More

Duxton’s Agri Bits and Pieces Vol. 160

 

QUOTE OF THE WEEK

“In the context of Japan’s aggressive monetary and fiscal policy actions, and in the context of its wider growth agenda, it would have been a signal if there were no reforms of Japanese agriculture. I think this sends a very clear message to large audiences, both domestic and external.”

– Ken Ash, trade and agriculture chief at the OECD in Paris

http://goo.gl/0cz84

Line

RICE FARMING IN JAPAN: A POLITICAL STAPLE

The government abolishes previously sacrosanct agricultural subsidies.

Not even the most ardent reformers around Shinzo Abe, Japan’s prime minister, believed that he would dare to scrap the policy, known as gentan, under which the government has paid farmers to reduce rice crops since 1971. But on November 26th the agriculture ministry said the system would be phased out by 2018. Rice growers, said Mr Abe, will be able to produce crops “based on their own management decisions”.

Allowing a free market for rice, the country’s sacred staple food, will not by itself transform Japan’s inefficient agricultural sector, which has declined precipitously in recent years. But it is an unavoidable and welcome first…

Read More