Why I am not buying FRM, page-5

Supermarket margins have been collapsing and they would be putting pressure on all suppliers yet FRM has increased their margins for years. They have no other option but to buy from the main suppliers.

Egg sales continue to increase so there is no argument that egg prices are expensive. In fact at the rate they have been increasing in sales volumes one could argue they are undervalued. Supermarkets have at times had shortages of eggs and so have no ability to push back on FRM.

Increased feed cost will take out most of the small players that might have joined the market in recent times. Which will result in cheap acquisitions for FRM as the only buyer and an increase in market share. During this time the population will continue to increase at 1.4% compounded. With again no invested in farms if grain cost increase.

Over simplified but grain is the commodity, eggs are the value add. If there is no sustained over supply then margins will remain.

I don't know if anyone here knows but Aldi will now only sell free range eggs. Does anyone here know if those eggs are now going to come from the new farm in Victoria?