Australian Agribusiness Group
AAG Agri-Index rose an impressive 4.8 per cent in November
As the general market continued to rebound in November, the AAG Agri-Index doubled the All Ords positive performance of 2 per cent for the month, according to leading research provider Australian Agribusiness Group (AAG).
The AAG Agri-Index saw a mixed result between its three subsectors. The manufacturer sector (largest division in the AAG Agri-Index) gained an outstanding 5 per cent but the diversified sector fell 5 per cent and the producer sector fell 2 per cent.
AAG Director Tim Lee said "the improving market conditions have boosted confidence in agribusiness and the 4.8 per cent rise this month, along with the impressive 15 per cent rise in the FYTD should encourage investors to seek their potential fortune in agribusiness"
"The standout winners in the AAG Agri-Index - Solverdi Worldwide (up 50 per cent), Montec International (up 50 per cent), Clover Corporation (up 28 per cent), Clean Seas Tuna (up 26 per cent) and Dromana Estate (up 23 per cent) all contributed to a positive agri image that will continue the growth of investor interest within the agri sector," said Mr. Lee.
Montec International was one of the top performers in the AAG Agri-Index adding 50 per cent to its value after establishing partnerships for specific products in China, specifically children's formula and ice cream. Dromana Estate added 23 per cent after entering into agreements with Hong Kong based companies with respect to an investment in Dromana and an agreement to distribute wine in China.
"Recently there has been an increased level of activity between Australia and overseas investors. Overseas investors have targeted Australian agriculture because of Australia's unique placement and growing concerns in regards to over population, food security and change in dietary demands. The strengthening relationship between Australia and overseas investors will provide abundant opportunities for Australian agribusiness,"
Despite the overall positive AAG Agri-Index results there were some companies that struggled - Olea Australis (down 25 per cent), Farm Pride Foods (down 20 per cent), CO2 Group (down 19 per cent), Freedom Nutritional Products (down 17 per cent) and The Ark Fund (down 18 per cent).
"The AAG Agri-Index is finishing off the calendar year with outstanding results and is expected to continue its encouraging figures well into 2010," said Mr. Lee.
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The AAG Agri-Index is an end-of-day market capitalization weighted index that tracks 58 listed agri stocks. The composition of the index covers horticulture, forestry, fertiliser and manufacturing to provide a strong representation of performance within the agribusiness sector. The full update can be accessed via http://www.ausagrigroup.com.au/
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