My take on the concall. I did not appreciate how complicated the business really is. What i still do not understand - Can Avanti be fully integrated so they can control the supply chain?
My notes on the supply chain from last concall: Slightly better results. Ecuador is not a threat, they focus on low value Products. Main raw materials - fish, wheat and Soya 85% of the cost. Wheat and soya has MSP , minimum support price. Govt will keep price same or increase to show support to farmers during election time. On the other hand, Avanti can not increase the price of the feed as well. Fish meal price for export is all time high 150 due to Peru exports Collapse. (1) Raw Material dependency - fish meal, wheat, Soya. (2) Aquaculture will grow only of fer more get good price. (3) Exporters have to make profit from there So that depends on global demand/Supply. Its complicated supply chain with Scarce raw materials. R&D for raw material substitute is necessary. (4) Shrimp, as a premium protein demand is growing. China is a big importer now. With affordability increases, Shrimp demand expect to go up in long run.
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