Replies to post #124261 on Sino Agro Food Inc (fka SIAF)

[RealDutch]

That scheme was also posted in the article today, btw. There was one change. The males are 50g now instead of 66g after grow-out. And the total output is a bit lower as a result as well. Lower by approx 1,000 MT. So I guess they are down from 12,000MT to 10,000 MT now. But I will use 5,000 MT :-)

[RealDutch]

Swede, the scheme presented by Tony must be 5 years old by now. Before Tony joined the company even. These are theoretical, optimal, models. Never to be achieved in reality.

Perhaps they initially thought that they could apply the same stocking density as Mexican White. Who knows. But based on the information we have now, I can't see more than 2,500 MT coming out of the MegaFarm. Perhaps they can boost it to 5,000 MT in the long run.

But let's assume 2,500 MT at $15/kg and 35% profit. That's still $13M profit. And 3 buildings cost close to $60M. So that's a payback time of 4.6 years.

This is the problem. Why they can't put up 18 more buildings in just 2 or 3 years time. They need a whole lot of cash flow from operations.

And this is why they switched to finfish. As long as they can rotate, it's more profitable than freshwater prawns. IMO.

Perhaps they should be growing Mexican White indoor. Or perhaps we should stick to ODRAS. We can't afford to make another strategic error, can we?

LOL. If they can really produce 10,000MT of prawns from 3 buildings, they would have installed the boiler the first time. I challenge Tony to prove me wrong :-)