Ann: Results of Meeting-FRM.AX, page-37

Thanks very much for that Portfolio. So it's the 3rd biggest player, and the 3 biggest players only hold 50% of the market, in an industry with minimal differentiation, where the customers (supermarkets) have most of the power. My concern is that regardless of potential demand driven growth, this industry dynamic is a recipe for price competition leading to margin erosion, and ultimately low returns on incremental capital. The only sustainable shareholder wealth creation I can see here, is if you are the lowest cost producer. The only way I can see a sustainable cost advantage is scale (eventually all participants can, and will, invest in automation).

Unless of course the management and culture at FRM is superior. I'm not sure, however, that culture can be a sustainable source of advantage in this industry. Unless of course we are talking about a culture that can result in more productive chickens (ha ha).

Then there's the trend toward supermarket private labels...