Homepage
PR Newswire
03-06-2012, 11:54 PM
I think processed vegetable should have an average margin, rather than better margin than fresh produce. Like in any commodity business, upstream, higher risk, volatile, but could be higher margin; mid stream, lower risk, consistent but lower return. fresh produce probably can have better margin for some time, but could have very bad margin in another time or bad harvest any time. The risk involved kinda gives it a better margin.
the higher margin exhibited by CMZ could be a fraud. however, in US, it could be a more competitive market. All the companies can have a lot of land and good farming technology. In China, it is very different. The farmers could have very little land and bad farming technology. As there are much more farmers than advanced agriculture companies, the price probably is set by the low productive farmers than the advanced agriculture companies. In a way, it could give the large agriculture companies a strong profit margin.
the higher margin exhibited by CMZ could be a fraud. however, in US, it could be a more competitive market. All the companies can have a lot of land and good farming technology. In China, it is very different. The farmers could have very little land and bad farming technology. As there are much more farmers than advanced agriculture companies, the price probably is set by the low productive farmers than the advanced agriculture companies. In a way, it could give the large agriculture companies a strong profit margin.