REMEMBER THE BRITISH PARENT COMPANY THAT HOLDS THE CONTROLLING STAKE HERE. THEY MIGHT AT SOME POINT MAKE A TILT AT MINORITIES. ILLVO APPARENTLY HAS A PILOT FUEL ETHANOL PROGRAMME IN ENGLAND AND INDIA. THEY ARE IN POWER CO-GENERATION ARRANGEMENT WITH THE GOVERNMNT IN MALI. IF SUGAR ETHANOL REALLY GETS GOING IN EUROPE, ILLOVO, WITH ACCESS TO HER AFRICAN FOOTPRINT, IS IDEALLY POSITIONED TO BENEFIT FROM THIS. IT WILL ALSO DRAW THE SUGAR PRICE ALONG WITH THE OIL PRICE AS A SUBSTITUTE. REMEMBER THAT SUGAR TRADES AT SUB-ECONOMIC POINTS AND DOES SO A RESULT OF YEARS OF EUROZONE PRICE SUBSIDISATION. IN LIGHT OF THE NEW EUROPEAN POLICY (TO S***** THESE SUBSIDIES) AND HOLD A SET FLOOR PRICE OF $350 US FOR DESIGNATED AFRICAN SOURCE COUNTRIES (WHICH ILLOVO IS EXPANDING IN (AND INTO),) ILLOVO WILL HAVE THE ABILITY TO EXPAND HER SELLING PRICES COMMENCING IN A YEAR AND A HALF OR SO BY 45%. THIS WILL COINCIDE WITH MANY OF HER NEW PRODUCTION PROJECTS. HER GEOGRAPHIC SPREAD ALLOWS HER SOME WEATHER INSURANCE ABSENT IN MANY THER SUGAR PLAYS. ILLOVO ALSO BENEFITS FROM BEING THE PRIMARY SUPPLIER OF SUGAR IN HER MANY AFRICAN MARKETS. THIS GIVES HER GREAT PRICING POWER FOR A SUGAR COMPANY. ALAN GRAY DID THEIR HOMEWORK ON THIS COMPANY (AS ALWAYS.) SHE HAS GREAT PROSPECTS.
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