Re IBP - Deal
" On one hand we have the proposed buyout of IBP, Inc. stock by an investment group
that contains Archer Daniels Midland, Co. (ADM)." - the big guys....
On the other hand we have:
"the National Farmers Union (NFU - the little guys) to call for an investigation of the
proposed buyout of IBP,"
Which hand is 'best' for SI?? - the IBP deal and the support of the larger agribusinesses
Corporate streategies...
or, the samller 'family' farms.... since... as stated...
"This deal has great potential to seriously harm farmers and ranchers," said Swenson.
"Without competition, producers have no options nor bargaining power in the
marketplace. ...
What 'hand' 'fits' SI's business strategy?? Struthers does seem to 'model' their
organizational structure (vertical integration) and their business strategies (alliances and
shared promotion) from the biggies...IMO
it is interesting to me anyway.
SI stated in their last email:
"Today there are approximately 114,000 pork operations compared to
nearly 3 million in the 1950s. Hog farms are grown in size, too, while
reducing in numbers. Over 80 percent of the hogs are grown on farms
producing 1000 or more hogs per year while over half are growing on
farms producing 2000 or more hogs per year. These operations, which
are often very technically sophisticated, are still predominantly
individual family farms. These farms are our clients."
It seems that SI may not be going down the IBP road ... or are they????
Or are they playing 'the best advantage' from both 'roads' ...
We'll all kmow more "soon" .... :)
All the best....
By: Required (RB)
Cheers
Voluntary Disclosure: Strong Buy : Long and Short Term
Cheers
Voluntary Disclosure: Strong Buy : Long and Short Term
