shv vertical integration, page-18

This from the local farming newspaper pretty much sums up the killing Olam has made on these assets and demonstrates why they can easily pay a pretty price for SHV as the last asset to pick up..


"Olam has agreed to buy 3853 hectares of planted almond orchards around Robinvale and Boundary Bend and more than 48,000 megalitres of permanent water rights for $160 million.

It made a similar swoop in September.

Olam now has bought 88,825 megalitres and 11,853 hectares of orchards for $288 million.

At yesterday’s price for permanent water ($1800-$2000 per megalitre), Olam’s water stake alone is worth about $160 million on the open market and makes the Singaporeans one of the biggest private water owners in south-east Australia.

The land, with mature almond trees expected to continue to make profit, sold for a song for about $11,000 a hectare.

But rather than consider the latest deal as a steal, Robinvale locals have welcome the arrival of Olam as a saviour."