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Ceased Operations May15, 2009
Message: Geoff, producers producing their own Beta Glucan
The idea of large producers of poultry, swine, cattle, fish, etc. dragging their heels to give them time to build their own plants to produce beta glucan has crossed my mind. On closer examination and research, was disregarded.
Since the time that Henry Ford had a fully integrated production system for building automobiles, from the mining of metal, vulcanized rubber tire production, all the way to manufacturing paint for the Model T; where he could provide the consumer with any color they wanted as long as it was black, since that time, the economics of our country and the world has changed.
Seeing the scope of the International Poultry Show and the suppliers of products to support one food product - poultry, hammered home to me the diversity of products that go into producing a product that many of us eat each day.
A poultry producer focuses on one thing, growing the best animal possible at the cheapest price possible to feed the most of us possible. These poultry producers weigh all products to see if they help their bottom line. They buy what works for them.
There are feed producers that manufacture the feed. They try to do it for the most economical rate possible for the greatest return on their money. Right now they and the livestock producers are being put on great duress because of the corn commodity prices. Corn has risen tremendously due to the ethanol craze. I saw the futures rise to $4.50/bushel yesterday. Today, the futures for corn was down to $4.29/bushel. A year ago the price was half of today. This is an aside for those interested in the chain of cost which will be passed on to the consumer.
There are producers that make feed additives; the vitamins and minerals that are added to the feed. Poultry producers, again, weight the cost to the advantages of the additives and buy what works for them.
There are producers of the machinery that supports the almost totally automated production line from the egg laying to the slaughtering to the packaging.
The shear size of the production of elements that go into making fried chicken is overwhelming and individuated across a broad spectrum of products.
For a large (much less smaller) poultry producer to consider making one additive when they buy everything from producers that can make it more cost competitive would not be cost effective. It is a simplistic concept applied to a vast industry.
The same applies to all industries that feed our nation and world.
With that in mind, it is possible that individual producers of poultry will buy Agrastim straight from BioAgra but it is more likely that they will require additive producers that they buy from to buy and incorporate Agrastim into the additive they use. The additive industry is huge. There are additive producers that also produce additives for human consumption. Kellogs does not produce their own vitamin and mineral additives. They buy it from producers of vitamin and mineral additives. Some of these producers even cross produce for human and livestock needs.
Look at ADM. They spread the gamut of supplies to the industry. They research products that will enhance the human food chain from grain to additives.
Agrastim will be one component of many that enter the production of the final product that ends up in our freezers and dining room tables.
If (and I must put the "if" in) Agrastim enters the livestock market as an important health improving additive, though it would be one of many parts of the incredible food chain production, the market is so vast that we will do very well with revenue. Even if a small percentage of poultry producers (I am not discounting swine, fish, cows, etc.) were to demand the addition of Agrastim to their additive supplies, we would do very well.
The down side is that the independent analysis and corporate testing yield results that indicate that Agrastim's benefits do not support the cost of Agrastim. So far, the results are impressive so, again, that is why I am optimistic. However, as in any testing, we have to be guarded.
Well, back to watching and trading this current stock market correction. I have been waiting for this correction for months and am glad to see it.
Bond prices are up yields are down, markets across the Dow, Nasdaq, and S&P are broadly down. Gold is holding (yea). Oil is up.
VYTC is one of the few that is steady and not red today (chuckle).
Kent
Since the time that Henry Ford had a fully integrated production system for building automobiles, from the mining of metal, vulcanized rubber tire production, all the way to manufacturing paint for the Model T; where he could provide the consumer with any color they wanted as long as it was black, since that time, the economics of our country and the world has changed.
Seeing the scope of the International Poultry Show and the suppliers of products to support one food product - poultry, hammered home to me the diversity of products that go into producing a product that many of us eat each day.
A poultry producer focuses on one thing, growing the best animal possible at the cheapest price possible to feed the most of us possible. These poultry producers weigh all products to see if they help their bottom line. They buy what works for them.
There are feed producers that manufacture the feed. They try to do it for the most economical rate possible for the greatest return on their money. Right now they and the livestock producers are being put on great duress because of the corn commodity prices. Corn has risen tremendously due to the ethanol craze. I saw the futures rise to $4.50/bushel yesterday. Today, the futures for corn was down to $4.29/bushel. A year ago the price was half of today. This is an aside for those interested in the chain of cost which will be passed on to the consumer.
There are producers that make feed additives; the vitamins and minerals that are added to the feed. Poultry producers, again, weight the cost to the advantages of the additives and buy what works for them.
There are producers of the machinery that supports the almost totally automated production line from the egg laying to the slaughtering to the packaging.
The shear size of the production of elements that go into making fried chicken is overwhelming and individuated across a broad spectrum of products.
For a large (much less smaller) poultry producer to consider making one additive when they buy everything from producers that can make it more cost competitive would not be cost effective. It is a simplistic concept applied to a vast industry.
The same applies to all industries that feed our nation and world.
With that in mind, it is possible that individual producers of poultry will buy Agrastim straight from BioAgra but it is more likely that they will require additive producers that they buy from to buy and incorporate Agrastim into the additive they use. The additive industry is huge. There are additive producers that also produce additives for human consumption. Kellogs does not produce their own vitamin and mineral additives. They buy it from producers of vitamin and mineral additives. Some of these producers even cross produce for human and livestock needs.
Look at ADM. They spread the gamut of supplies to the industry. They research products that will enhance the human food chain from grain to additives.
Agrastim will be one component of many that enter the production of the final product that ends up in our freezers and dining room tables.
If (and I must put the "if" in) Agrastim enters the livestock market as an important health improving additive, though it would be one of many parts of the incredible food chain production, the market is so vast that we will do very well with revenue. Even if a small percentage of poultry producers (I am not discounting swine, fish, cows, etc.) were to demand the addition of Agrastim to their additive supplies, we would do very well.
The down side is that the independent analysis and corporate testing yield results that indicate that Agrastim's benefits do not support the cost of Agrastim. So far, the results are impressive so, again, that is why I am optimistic. However, as in any testing, we have to be guarded.
Well, back to watching and trading this current stock market correction. I have been waiting for this correction for months and am glad to see it.
Bond prices are up yields are down, markets across the Dow, Nasdaq, and S&P are broadly down. Gold is holding (yea). Oil is up.
VYTC is one of the few that is steady and not red today (chuckle).
Kent
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