OTCQX:AGXXF - Post by User
Comment by
Marginofsafteyon Sep 18, 2017 5:23pm
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Post# 26711070
RE:Big decline in SK lentil production this year
RE:Big decline in SK lentil production this year The supply reduction is inflationary to the price which is positive considering: (1) otherwise depressed pulse prices from a great 2016 Indian Harvest and (2) a unparalleled logistic network that AGT has, where it doesn't source any pulse produce greater than ~5% from any one producer.
Also keep in mind that Indian Harvest has declined by ~4-5% as a result of depressed prices, as farmers have shifted away from growing pulses. Couple that with growing consumption of pulses and a natural net import pulse country, all these conditions are net positive favorable for AGT.
Last positive note is fourth line of Food Ingredients is up & running and should be at full capacity soon which has better margins and strong medium-term to long-term growth potential.
GLTA,
MarginofSafety