Ann: Half Year Report to Shareholders, page-99

"All I am saying is if they simply stopped buying in honey for 45 days, half of that equity which is currently "tied up" as Barrels of honey, would be converted back to cash, and they would have $19,000,000 cash and $19,000,000 of honey on their balance sheet rather than $38,000,000 of honey."

Actually this is not true. They would sell the honey at a 40% margin so $19 million would convert to $32 million in cash. This is because inventories are valued at cost not selling price.

Just being pernickety. I agree with you that management are absolutely right to build inventory. In a way honey is preferable to cash because prices have gone up significantly over recent years.

I imagine if the inventory build went through investing cash flows instead of operating cash flows we wouldn't even be having this conversation.