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Gosh Friday was another down day back under 230p , this ship does travel in a narrow channel, never gets cheap enough to warrant buying more never high enough to warrant selling,
Hey Chris I am qualified to answer that and I could say that over 100 such farms I've visited none run that kind of enterprise, the vast bulk of UK beef is grown reared on family farms, they have a herd of suckler cows, calve each year and their young are either reared sold fat, sold as stores and normally fattened in the UK, or enter the home herd as new mums..! Ps saw someone else's comment about mcdonald's, I know about their supply chain and can say they are supplied quality UK beef, UK free range eggs, British milk, British potatoes, they in fact source good ingredients and their company is subject to the "fake media" aka propoganda!!
Tesco will benefit from Brexit in short term if British Pound currency rate drops, the $10.3 billion we are getting for Thai business will be bigger if GBP is depressed. The proceeds of that sale is imminent!
Hi Molokai,
Do you know how much the special dividend will be , will it be more than the usual interim/and final?(comes out of £ 6.5 BN they got from Malaysian arm -buy back)
Can someone with a farming background pls let me know if the following is still true...it used to be that all British beef was initially reared in Ireland and then the animals were exported live into British farms. The animals were then fed for 6 weeks to three months and then legitimely sold on as prime British beef.
Both Ireland and the UK benefitted with this arrangement so if it's still the practice, what will happen post January 1?
Tanx for any clarification
Thankfully i stopped eating meat 25years ago.Absolutely refuse to buy my grandchildren Macdonalds,burger king or any of the associated muck.
Will happily take the dividend though
Welfare standards of animals seem to be of far more importance to the UK populace than in many places (though there is still a long way to go). When "little grey haired old ladies" take to the street then you know you have got it wrong and things have to change PDQ. I remember the stushie when they blockaded Dover (I think) to stop live veal exports due to raising and transportation conditions, the Government folded within weeks and new standards brought in. Europe followed suit shortly after. This was late 1980s / early 1990s I think.
Without promoting a share ANIC, have a look at portfolio pages of the Agronomics web site. The are real meat products that have been developed in a lab. Some are being brought to market in the next couple of years as they scale up to commercial production.
Seeing through the noise.... Disposal Proceeds due 18th December.
HL yesterday have Tesco as one of the best shares in 2021 with Tesco ramping up the Internet site and deliveries, adding distribution centres and reducing lines of products.
I must just add that beef is something we should all be eating less of as beef production is something that is environmentally unfiendly? I no longer eat beef burgers and have the occasional beef as a treat and am happy to pay a little more from it if produced in UK and not elsewhere. Yes lets keep UK standarsd higher than EU.
A Brexit outcome of either deal or no-deal will have little affect on the Tesco SP. The consumer will always pay an equal or greater proportion of disposable income when it comes to food. (Maslow).
barchid
Should have been a little clearer in making the comparison with beef mince. If supermarkets only supplied British mince because tariffs made EU too expensive then animal welfare would be very much higher.
I have a background in livestock and know that standards here are certainly better than I have witnessed in Europe.
I’m not anti Europe by any stretch of the imagination as I live between France and the UK.
Same goes for supermarkets too, not as many best before dates on a lot of goods and customer service is at best average.
Again, slightly off topic I read that M&S see an opportunity with their clothing sales due to many high street retailers falling by the wayside. I’m sure the same applies to F&F
Leas
Good points but Rosewall was talking about welfare standards, I can still remember trailers of live lambs being burned to death for the benefit of TV by "French farners".
My case rests
Animal welfare is a concern for most consumers in the UK. Surely it would be better to produce our own beef mince in the UK rather than outside. The BBC used beef mince as an example yesterday quoting potential tax of 46%. I’m sure British farmers can produce cheaper than that, make a good income for them, undercut EU prices and allow TSCO to maintain their margin.
Slightly off topic, some big institutions moving away from energy stocks to plant based producers. Whether we like it or not plant based food is a fast growing market. Probably bigger in the UK than Germany, France or Spain. Another example of how Tesco could potentially gain from the UK leaving the EU.
Rosewall
Is it possible to keep to Tesco's prospects and not bleat about brexit ?
Most people here want to enhance their knowledge of the company and its prospects, or am I mistaken ?
There is no doubt that there will be opportunities to purchase goods from other countries but my concern is welfare standards as well as prices. As it stands, you need an IQ of 356 to identify products with palm oil. At least EU standards were common and in the main adhered to else hefty sanctions
Apart from initial supply issues, supermarkets will source outside of Europe if the item is cheaper. Can see a bit of panic buying in the Mew Year but by the end of Q1 things will be clearer.
As posted before , IMO if a shopper has a weekly budget of £150 a week then they will still spend the same amount. It’s about how they protect margins.
Tesco has remained strong throughout the pandemic, they will take Brexit in their stride.
Mr_Rooster
You are utterly correct but I merely used that exchange rate as an illustration that the Europeans were not the haves & we were not the have nots as stated because we could, for instance, as I pointed out go to Switzerland on a good holiday without needing a mortgage, which most of us would need now. Simple as that, last thing I want to be drawn into is a brexit barney, all I want to establish is an understanding of Tesco's prospects in the next few years, which personally I am bullish about due to their scale but especially their online presence.
I am on this board to try to make money
“ is how much our currency has depreciated against Germany...”
Barchid, currency values are just an instrument for making economic score like China deliberately devalues its currency. Look at the quality of life we currently enjoy and how it compares with 1973 or the other EU countries at present time. We are going through Brexit any way, just need to figure out where we are heading and what industry would likely to thrive in terms of investment.
Gavster
It actually was not quite as bad as you state, we joined/entered in Jan 1973. At that time £1 bought almost 8 deutsche marks, Put that into euro's is about 4 euro to £1, which is how much our currency has depreciated against Germany and many other EU currencies so we have not had an unalloyed success of the EU. We certainly did not enter it as paupers as you seem to imply, with that exchange rate Switzerland was a very popular holiday destination !
There were good points & bad points, as there are in any situation, financial services did well, heavy industry did badly, but life goes on whatever, so crying into your Tesco purchased beer should not really be an option.
We are where we are !
Hi Barchid
We already have a large share of South African farm produce and Argentinian Beef. So Yes, maybe supply can increase from SA and get smaller from Spain, and Thanet Earth should double in size. But these things will happen over time and if you can remember that far back, you will also remember how Britain was the 'Sickman' of Europe back then, when just about every job especially technology was higher paid within Europe than in the UK. I was reading through my Dad's pile of kept news mapers and magazines at the time and was shocked to see how Europe were definitely the haves and we were the have nots. It then stands to reason that prices would increase when joining the Single Market, but just as the prices in Switzerland are eye-watering as they are all much more wealthy than ourselves, there is also the effect of poorer countries printing themselves out of problems causing higher prices with inflation. Because the UK will have such an economic hit, then it stands to reason our prices will not be rising as a pulling up effect catching up with a richer market, but rather pulling down through inflation.
Brexit was always going to be this way. Businesses, economists and academics have persistently tried in vane to warn the UK public but all were ignored, and encouraged to be ignored by government and the right wing press alike.
Gavster
You make some good points here but one thing which you do not seem to have factored in is how much food we will be buying, after a relatively short time, from non EU countries which can supply food at much cheaper prices than the EU allows.
I am sadly old enough to remember how much food went up in price after 1973, it was a very significant amount, so much so that it had to be tapered in over a few years, due to (then) EEC subsidies to their inefficient farmers.
Argentinian beef for instance, much cheaper, as is South African, not to mention fruit being allowed in from countries who are in season when we are not. I'd back Argie beef against Irish any day, thanks very much !
So there will be swings & roundabouts, you may well be surprised at the high quality & lower costs of produce which for various reasons Brussels prices out of the market currently.
Jinan
I most definitely will not down play this disaster. I am under no illusions what this means.
I’m sure this year gets a nosebleed any time it gets near the £2.30 area,!
Now if we all had only put $5000 in Amazon in 1997 it would be worth $4 million now strewth!
I think you've wrong there...
IMO a 'No deal' is going to hit the people of the UK hard, but investment-wise, the money printing machine and infrastructure spending will be in full force, so IMO a good time to invest in solid companies, like Tesco.
EU = 60% of British Trade.
Average of 10% tariff on EU trade = 6% value of all UK trade so economy will roughly go down by 6%, supermarket prices will of course rocket by anything up to 50% as the tariffs get passed along the chain, each link, companies try to keep their percentage and earnings the same. The 2008-2010 period hit the economy much less but still caused a huge escalation of prices.
Also..."The highest 1% of income taxpayers account for 27% of all income tax" in the UK.
Boris has already stated "F....k Business' but made sure his Fox Hunting pals were not effected by the lockdown.
That speaks volumes.
This government has always aimed for a No Deal, the complication was how to make sure he could blame the EU.
We, he workers and middle class been sold down the river so that the elite few will keep their tax avoidance.
As an example. Jonathan Harmsworth still exerts his influence telling his readers how evil the EU is, so that VAT will stay out of printing and he'll keep his tax-avoidance status spending 6 months in France a year. Yes these principles could be opted out of as the UK always had power and sovereignty over any EU rules, but being the only fish swimming the other way in the largest market is not good for business or relations.
Consider Harmsworth's position.. Why would you have a newspaper like the Daily mail and preach remain knowing it could deplete your own fortune by 100s of millions ?
IMO It's obvious that Boris only wants to take care of the rich, as they pay most of the tax, but voting-wise all he has to do he pander to the odd policy switch due to Marcus Rashford tweets or saying whatever he thinks the public want to hear.
https://www.icaew.com/technical/tax/personal-tax/income-tax/income-tax-articles/uk-increasingly-reliant-on-super-rich-for-tax-income
Shame most people don't have their head above water
Food price inflation will hit alot of people
Please don't downplay it