FOOD & AGRICULTURE

The SA Food sector comprises companies ranging across the food value chain, from fishing and farming, through to processing and production of highly recognisable brands on SA’s retail shelves. An outlier is Bidcorp, which operates in food distribution in Europe and other international markets.

INDUSTRY EXPOSURE

Business: Supply chain disruptions, political uncertainty, and crumbling SA infrastructure comprise the most severe risks in the external business environment. A material issue for the agricultural sector, in particular for poultry producers, is the threat of cheap imports and a global glut from other BRICs, specifically from Brazil. 

Environment: Raised materiality, with threats to water and energy supply.

Society: Issues continue to be highly material in a socio-economically stressed market, with the following being discussed and rated in the report:

  • Food security and access to products

  • Obesogenic foods and public health outcomes

  • Food hygiene - Listeriosis, Avian flu, Coronavirus

  • Human resources (Talent management and Fair Labour)

  • Equitable involvement and transformation 

Governance: Issues have slightly reduced in materiality as leadership teams were largely refreshed in this sector, reducing exposure to power concentration, imbalances on the board, and lack of independence. Stiff competition has also marginally decreased marketplace exposures, such as to price gouging/fixing and other unethical behaviour.

In this report

  • Astral Foods (ARL)

  • AVI (AVI)

  • Bidcorp (BID)

  • Libstar (LBR)

  • Oceana (OCE)

  • Rhodes Food Group (RFG)

  • Tiger Brands (TBS)

Price: $825

Included:

  • Full 29-page report covering all 7 companies in the Food sector

  • Introductory in-person consultation, scheduled at your convenience; learn more about how to link FarSight scores with your valuation process, and get up-to-date answers to specifics on each company under coverage.