Analyzing Security Valuation Report

Security Valuation Report Select Harvests Competitive Analysis Select Harvests Limited is a leader in the almond industries not only in Australia, but also globally. In addition, for a number of years now, the company has operated a global competitive almond operation, bringing about strong revenues and proceeds to the stakeholders. Global competitiveness and additional prospects to leverage systematization and scale invigorated the company to additionally increase its acreage (Bird, 2015).

The Select Harvests faces great competition from the industry, including numerous Almond Manufacturers that are yet to be listed in the stock exchange, for instance, Nut Producers Limited, Almond Co Limited, and also Olam International. Select Harvests has a competitive edge in the industry. For starters, approximately 50% of the revenue generated by the company emanates from the management fees of third parties, in addition to the capital financed in the past three decades or so, in research and development, in almond production.

One of the strong suits and competitive edge that Select Harvests has is the technology and expertise in the management of orchards. The entrance of a new competitor into the industry might not have the capability to re-produce similar expertise in such a minimal time period to surpass Select Harvests in the management of orchards in the nation. For this reason, Select Harvests is a leaders and trailblazer in the business of managing almond orchards (Wong, 2010).

Prior to the year 2009, managed income schemes were set up and instituted by corporations, such as Great Southern Group and Timbercorp. In essence, these companies would leverage on the capital of prospective investors to buy and acquire plots of land or orchids for the purposes of partaking in agriculture, with an assurance to the investors of a certain amount of money in proceeds or returns. These two companies also purchased lands for growing almonds.

However, owing to the letdown of the model for managed investment schemes, and their massive debt, Great Southern Group and Timbercorp were forced to sell off their land properties. For instance, in recent periods, Timbercorp retailed its 29,500 acres of land to Olam International (Select Harvests, 2010). However, with the most recent development of global investors, for instance, Olam International acquiring massive tracts of land for almond plantation, Select Harvests faces increased competition in increasing its prices and market share.

In particular, Olam International has the biggest market share in the Industry at 40% while that of Select Harvests stands at 15%. This is illustrated in the figure below. Olam International focuses on the marketing and distribution of agricultural produces, and has grown and instituted its channels and linkages all over the globe. It is acknowledged to be one of the leading supply chain managers for agricultural merchandises in the entire world.

Taking this into consideration, Olam International could pose a significant competitive threat to Select Harvest's marketing and distribution trade for almonds in the forthcoming periods (Wong, 2010). Company Market Share Acres Olam International 40% 40,000 Select Harvests 15% 11,560 Others (Nut Producers Australia, Almondco 45% 23,182 Australia Almonds Orchards 74,742 The figure above indicates that the company is one of the.