ned schmidts agri food thoughts, page-5

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    GNC's financial position is not as strong as ABB's and its grain storage assets are in areas where there is heavy individual farmer investment in storage and good local markets for grain, ie farmers can avoid using GNC's infrastructure. ABB operates largely in SA where there is very little investment in on farm storage and a small domestic market meaning farmers must tap ABB's infrsatructural monopoly.

    ABB would be acquiring more grain than GNC simply because farmers are choosing the strongest financially placed to market their grain through also.
 
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