SGLLV: People always need to eat

Ricegrowers (ASX:SGLLV) also known as SunRice, is a global Fast Moving Consumer Goods business focused on rice and related products. It commenced as a growers cooperative in the Riverina district in South East Australia which is one of the country’s prime food growing regions. It has now grown into a global business, sourcing rice from many different countries and selling into a wide network of countries.
Ricegrowers revenue is sourced from five main segments. The breakdown of revenue from the first half of FY24 is shown in the chart below.

The Rice pool relates to the original part of the business whereby growers from the Riverina district sell their rice harvests into the business. This segment then derives its revenue from selling the rice to external customers or selling it at arms length prices to other segments within the group. About 25% of the Rice pool revenue comes from inter-segment sales. That is why there is an eliminations segment in the pie chart to back out those internal sales. The producers are paid a price per paddy tonne for their rice harvests, called the pool price, which takes into account...