Sino Agro Food Inc (fka SIAF)

[DougS.]

I think they're very much separate issues. The rise and fall in the Shanghai market has been very quick and doesn't capture the true wealth creation that has taken place in the country. A low growth scenario would eventually be pretty grim for their capital markets but with low growth will people really stop buying prawns? In other words, would it be bad for SIAF if growth was still taking place but just below what the capital markets have come to expect? I don't think so. And will the influx of people moving from the rural mainland slow down or stop? Not with the huge income disparity. And will it take away the competitive advantage that SIAF has over open pit prawn farming? Nope.

I don't know how one would go about quantifying the hit SIAF would see to demand during a severe economic downturn but I'm not too concerned about that either. Over the arch of their growth they will see multiple downturns. That will happen. But I'm comfortable with the fundamentals of the business plan whenever it does.