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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (42394)	4/24/2011 9:58:04 PM
From: E_K_S	Respond to of 78567

Re: Fish farming - A business model to feed the emerging 3rd world markets I noticed that Marine Harvest hedges their fish production with future forward contacts. I wonder if they carry some type of insurance for catastrophic disease loss similar to what farmers buy for crop insurance due to weather. If so, these events can be managed with insurance coverage and added as a cost of doing business. The operation technology is still emerging and perhaps through breading they can produce strains that are less susceptible to these viruses. I do know that fish farming is one of the most efficient ways to convert feed (usually soy beans and grains) into food protein. I know that China is the worlds biggest consumer of chicken eggs and in time they will demand other proteins like chickens and fish. ---------------------------------------------------------------------- Like w/ traditional land based farming, I believe fish farming will eventually become an efficient way to produce renewable high demand protein. I am betting that these contamination virus events will eventually be controlled through new bio-technologies. The value proposition may really lie w/ the advancement of their production technologies (ie. patents on the non virus susceptible genetic breeds) rather than with the annual farm's production. I will have to do more research to see what sort of R&D patents they hold and/or might be developing. I am not sure if their business has enough production history to justify their very attractive dividend policy. EKS