Why I am not buying FRM, page-42

So let me get this straight... because FRM will face increased costs in the future (2 years away... maybe) we shouldn't buy now. You realise that's like saying don't buy BHP because commodity prices will drop some day in the future. Perhaps costs were too high previously and management was overpaying previously which is common in smaller companies who perhaps have always been paying the same rate. Just because costs were at a level previously does not mean they will go back there.

You can increase margins by increasing prices or decreasing costs. They have done the latter and you say this is a bad thing? Missed that lesson in accounting class.

Also, if you're saying costs for feed will increase then the whole industry will see a cost increase and have to pass these costs on. And yes this does happen in the supermarket. Look at fresh produce area or beef or lamb prices, and they're un-branded so it should be easier to find an alternative supplier who is willing to supply at the lower rate... however obviously not possible because everyone's costs have gone up.

This is a strange thread as I've always learnt that reducing costs is a good thing and if costs rise for everybody then the price consumers pay goes up as well.