MRG 0.00% 24.5¢ murray river organics group limited

So my last post was re the global price of farm gate dried fruit...

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    So my last post was re the global price of farm gate dried fruit in the US. It has increased substantially and so will prices in Australia in 2019. What the three processors will pay is yet to be seen. Two issues that I think have been missed is 1. that all processors have there incentives, sunbeam and Australian premium provide between $200 and $300 on top of there normal prices for new plantings(first 5 years) so MRO is going about it a different way. Also most large farms don't take rack rates, the negotiate or tender to all three for the best price. 2. Even if MRO just sent the raw fruit to the Us, minus freight they would be making $5-600 per ton this year. For all processors the game for 2019 would be not to pass on these global increase totally to growers! It is a business after all. I also think buying fruit from small operators is a dead business, there would be only 5 growers in Mildura that grow more than 175 ton each, most are 50 ton growers. Australian premium gets this and they partner with large pools of capital(Duxton) to own the vineyards and they take an off take arrangement. I am sure Mrg will do the same on a couple of thousand acres very soon. There is so much capital looking for these type of investments. In reference to the crop this is what I have found; The merbein properties are very good, between 2.5-3 ton on most farms, the wargan farm is a lot better the. the last few years, it has a truckload of currants, they Mrg will be selling at close to $8per kilo. The original Ivan has property in this group is more like 3.5 ton per acre. Merbein Circa - 900 The Gol Gol property, that has sunmuscuats and currants is ok, nothing fantastic @ 2 ton per acre. -450 ton The yatpool property has a huge crop of diamond Muscat's, the established sultanas are at 2.5 ton, and the young Sun muscat are loaded - circa 1000 ton. Colignon, still struggling given the water infrastructure wasn't installed until the last few months, will allow for next years crop to be much better. Still A very big property that has more than 50% new vines not producing, once run right will produce over 4000 ton by it self @ 2,5 ton. This year the sultana are curca 1-1.5, and new sunmuscats are 2 at least. So approx 1500 ton. So all up 3,850 ton, roll it down to 3,750. Plus all the fresh fruit and wine. Seems ok, noting to turn around Agri it takes a few years? But 2019 looks ok, anyone know what they have in there forecast to grow this year?
 
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