Hi Oly,
Are you following the "train-wreck" that is Aust Renewable Fuels ( ARW ) ??? Tallow prices making bio-fuel un-economic to produce in Australia .... even at US$90/bbl oil ..... faarrrrccckkkk !!! . Are you invested in the food industry at all. BY far my single biggest investment ( 10X PGM by value ) is in a company which owns 8 dairy farms in NZ and is currently building a $80m Whole Milk Powder factory ... the price of milk powders is up about 150% inside the last 12 months in USD. The commodity boom you talk about has certainly spread its tenticles far and wide. The value of good quality , large economic ( from 800-2000 cows ) dairy farms in NZ is up about 30% so far in 2007. With gearing of 35% equity , 65% debt the unrealised capital gains ( Tax free in NZ ) are spectacular. A $6.40 / kgMS payout compared to $4.53 / kgMS last year shows to extent to which farm gate returns have ratcheted higher as well ... a trend I can only see increasing.
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