M.P. Evans seeing bumper palm-oil crop
The palm oil and beef producer M.P. Evans has seen profits hit by a reduction in beef prices but the palm oil operation is seeing productivity surge.
The palm oil and beef producer M.P. Evans has seen profits hit by a reduction in beef prices but the palm oil operation is seeing productivity surge.
Evans's livestock division is based in Australia and has been hit a by a fall in prices for beef since the highs of late 2011.
The herd at the fattening site in South Queensland known as the Woodlands has been kept at 10,000 and the animals showed weight gains during the first half. But the fall in prices saw the unit lose US$0.57m in the six months to the end of June.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The group also owns a share in the huge North Australian Pastoral Company which runs a herd of around 200,000 cattle in the Northern Territory and Queensland. That share produced a post tax loss of US$1.24m in the first half against a $2.88m profit in the prior year.
The story at Evans's palm oil sites in Indonesia is quite different, with production of oil-palm "fresh fruit bunches" expected to hit 300,000 at the group's majority owned sites by year's end. Current numbers show the crop is 22% better than the same period of last year.
Prices for palm oil have declined 8% compared to the first half of 2011, to $1,096 per tonne which has led to a 31% decline in profits before tax to $15.33m. But the market likes the increased production profile, with the stock up 1% since the half year report was released on Friday morning.
Commenting on the results, the chairman of M. P. Evans, Peter Hadsley-Chaplin, said: "Overall, the Group has performed well in the first half of 2012 and it is particularly pleasing to note the increase in palm-oil profits from the majority-held operations...Projected growth in the Group's crops to 300,000 tonnes in 2012 is expected to continue to around 500,000 tonnes in 2015. Although the beef-cattle operations suffered a loss in the first half, the prospects for Australian beef remain favourable."
BS
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?
Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
By Kalpana Fitzpatrick Published
-
What does Rachel Reeves’s plan for growth mean for UK investors?
Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
By Katie Williams Published