Ann: FY21 Results Investor Presentation, page-16

"Several fund managers indicate that it is a tough business due to competition and cyclicality."

My understanding is that the fund managers don't know what the hell they are talking about here.

Cyclicality? The monogastric section is not cyclical. The nor is the aquaculture market though the pandemic may have dented exports a little. The input passed through so drought increasing input costs is not normally an issue. The ruminant demand is positively effected but drought. Overall unless something kills off large numbers of animals in Australia then most of the demand is pretty steady.

Competition is ever present. And does keep a lid on margins but there aren't too many direct competitions of Ridley's size. Once you have invested your capital then you almost achieve a local monopoly as long as you can supply good quality product reliably.

IMO the biggest risks are capital misallocation and loss of customers due to vertical integration.