Sunday, October 4, 2015

They Can Not Take It Away.

For too long anti Semites blamed the Jews for all the worlds ills, some still do and the followers of the Paedophile Prophet have a bad outcome for them embedded today.

After the barely avoided disaster of domination of the Pacific by Japan in mid 20th century my generation grew up with "the Yellow Peril" as China emerged from its slumber and today that Nations people are a favoured target for Xenophobes.

Auckland has endured several housing price surges since it seems forever and the latest has been laid at the feet of Chinese investors, including those who have made their home here, the families of students attending places of learning and another bunch almost invisible but popular as a target, "Chinese Investors".
Winston Peters has for decades raised such race based populism as an electoral crutch and sadly after allowing him to occupy that space unopposed the desperate NZLP went feral with Twit Twyford carrying the battle standard in recent months.
Such economic malfeasance spread to Rural NZ when a broke, over extended and badly run farming conglomerate was placed in receivership, offered as one parcel and a China Based outfit purchased it with the permission of the Overseas Investment Commission amid a storm of protest from various nefarious disparate protests with xenophobia a very clear commonality. The truth was they were the best outcome for the receivers doing the task they signed up for.
All published reports of subsequent matters around the Crafar Farms have a positive view and I am unaware of any negative publicity.

That Chinese entity then attempted to contract to purchase the farming conglomerate created by the Stephenson Family on the 33 000 acres of Lochinver Station located East of Taupo on the Napier/Taupo highway that bisects the Station, for 88 million NZ dollars when the suggested best offer from any NZ entity was some twenty million less.
After the dust settled and some months passed, at considerable compliance cost the OIC approved the deal only to have it thwarted at the eleventh hour by a kneejerk poll driven decision of the National Government with a Ministerial veto. A decision that had the perception it was made in response to a chorus from the daft, the ignorant and the unknowing.

In the meantime there have been numerous investments made  throughout this nation  by many  operators from many overseas locales throughout the world with nary a simper of protest,  in parcels of land, commercial entities and lifestyle opportunities at prices that almost always exceed what a local either can or can be coerced to pay.

Amongst that bunch of investments is another  Chinese outfit, Bright Dairy that has invested in Synlait, a Dairy processor outside the Fonterrible stable, located in Mid Canterbury.
It is still there, still accepting milk from its claimed 500 farmer suppliers and I am unaware of any serious complaint from those  suppliers.

Now another storm has struck with another Chinese investor, seeking a half shareholding in one of the major meat processors, Silver Fern Farms that has significant cash flow threats and Debt burdens threatening its viability and its ability to attract animals for slaughter from farmer suppliers.
All the usual grumpies and negates are out in force to thwart what may well be the only way forward for S F F with endless tales of woe that those Chinese will own us all.
Bollocks they are buying plant, goodwill of suppliers, existing market options and expertise but  that  could all evaporate in a week should they give sufficient cause. Oh some would continue to supply but not from any long term contractural obligations as History is littered with bribery and supply incentives that gain new clients but too often at the loss of existing suppliers who feel cheated.

Should SFF under any future activity upset those who breed and fatten the input product then the whole entity will be starved of animals to process and Alliance the other more settled and better funded major competitor will be embarrassed.

My info suggests without this capital injection SFF is headed for a big hole and although NZ Inc is a great producer of fine product we are very short on investment capital and this seems to be a last ditch opportunity for the immediate future of SFF.
To those who suggest an investment from suppliers could bridge the gap then as Daniel Kerrigan famously said as a response, "tell him he's dreaming"


Howie said...

"For too long anti Semites blamed the Jews for all the worlds (sic) ills"

The right has moved on now though, It's scary Moooooslims currently. Next week it'll be Canadians. Haters gonna hate, right old fella?

Anonymous said...

Try buying property in Bejing or Singapore and see how far you get. Do the words level playing field mean anything. No, I thought not.

Lord Egbut Nobacon

gravedodger said...

LEN I have no wish to buy even a socialist rag doll in Beijing, Singapore or even Sydney for that matter but that has absolutely nothing relevant to the bald facts that NZ Inc needs investment Capital, The Farmer Suppliers nor any other NZ Citizens have the dosh or the inclination to invest in what has all the hallmarks of a sinkhole and there is no way NZ Farmer Suppliers can be forced to supply any one meat works.

Of course there is very little to prevent all or any of those decrying the Chinese attempt to create a vertical marketing model within the NZ Meat industry and they are not going to be the last. History is littered with failed monuments to that dream across the Nation. Hell you could start with a large "Skyline Garage" on the Takapau and an office in Eketahuna and stay well away from SFF.