I don't have a perfect memory, but here's how I recall that it was explained to me when I questioned the high costs and risks of operating restaurants last September:
SIAF's arrangement with Leonie's is similar to their arrangements with the Fish Farm JVs. SIAF contracts to build out the restaurants, so the company is not responsible for any big capital expenses. Actually, the contrary.
Once operational, SIAF becomes Leonie's exclusive supplier, so the real value long term is realized at the wholesale and distribution levels, where the company gains an automatic customer.
