. Prices of feed, fertiliser, labour, haulage and diesel have all gone up thanks to inflation, adding further burden to stretched balance sheets.
There has been limited commentary from related businesses on the potential impact of the floods. While it’s still too early to assess damage, investors will watch upcoming financial reports and/or annual general meetings for guidance from a sector whose fortunes can change like the weather.Crops have been slow to ripen. With so much rain, crops stay greener for longer – delaying the harvest and cash flow.
With the removal of Russian supply from the market, this was expected to be a bumper period for these businesses. The good news is many of these businesses are diversified outside Australia. Crop protection firm Nufarmearns the majority of its funds from Australia, less than half comes from the fertiliser business. Beyond the diversification, strong price rises across the sector help offset any drop in demand.Floods affect farmers of livestock.
with its properties in proximity to the south and central highlands of Queensland. Inghams Group has properties in eastern NSW and Victoria – its third-party broiler farmers are likely to be affected. Ridley CorpInfrastructure is also a major flood victim. Extending beyond properties and buildings, inaccessibility to roads, rail and electricity hinder farmers significantly.