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Rogers Sugar Inc. (RSI.TO)

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#24 ·
Before jumping in, I would take a close look at the trade deal to be sure there were no negatives. Rogers benefits from import tariffs as they process everything in Canada. Not sure if they are a "low cost" producer or how they stack up against international companies.
 
#26 ·
Eder said:
Sugar use per capita seems to be declining long term
Click to expand...
I was thinking that - given consumer trends towards healthier lifestyles, as well as manufacturers using cheaper substitutes in their products.

Also, considering where sugar canes grow, I can't picture a small-cap Canadian-based company being a cost leader in the sugar industry by any means. Perhaps this industry will enter a consolidation phase in the future?
 
#29 ·
My statement is probably still true, given the tariffs the US places on sugar imports.

I always thought that refined sugar is always produced close to market because:
-raw sugar (cane or beets) is bulk cargo and cheap to store and transport
-refined sugar is heavy and relatively low value, and costlier to store and transport

Same kinds of reasons that cement is usually produced close to where it is used.
 
#30 ·
I just looked up the sugar yields from beets vs canes and they're very comparable. Why wouldn't RSI use more beets in its production? Building off andrewf's comment, wouldn't transportation costs and tariffs outweigh the cost savings of labour in the sugar cane countries?
 
#31 ·
I think beets are only competitive with cane in the US because of the import tariffs. Canada doesn't have those tariffs, so US or Canadian beets have to compete with sugar cane at something more like the world market price.

The US sugar market is seriously messed up. This drove soft drink makers to move to high fructose corn syrup and encouraged several candy makers to move their operations to Canada.
 
#32 ·
Canada has I believe an 8% tariff on refined sugar imports but nothing on raw cane sugar imports. I think the US has like a 150% tariff on any sugar shipped to the US that exceeds quota's. The sugar business is a basket case of protectionist crapola but I like Rogers Sugar dividend and if things get back to average they will cover it next year. I'll buy more at $5.
 
#33 ·
Eder said:
Canada has I believe an 8% tariff on refined sugar imports but nothing on raw cane sugar imports. I think the US has like a 150% tariff on any sugar shipped to the US that exceeds quota's. The sugar business is a basket case of protectionist crapola but I like Rogers Sugar dividend and if things get back to average they will cover it next year. I'll buy more at $5.
Click to expand...
Eder, it appears RSI is getting close to your $5/share target .....down 9.3% in the past 5 days. I may purchase some more too should it dip below $5.
 
#37 ·
A bit of insider activity the past few weeks...I took the plunge for 1000 shares.
We'll see tomorrow how it plays out.
Jan 4/14 Jan 2/14 Belkin, Alton Stuart Direct Ownership Common Shares 10 - Acquisition in the public market 1,222 $5.37
Jan 3/14 Jan 2/14 Lafrance, Daniel Direct Ownership Common Shares 10 - Acquisition in the public market 581 $5.37
Jan 2/14 Jan 2/14 Ross, M. Dallas H. Direct Ownership Common Shares 10 - Acquisition in the public market 800 $5.36
Jan 2/14 Jan 2/14 Ross, M. Dallas H. Direct Ownership Common Shares 10 - Acquisition in the public market 73 $5.37
Jan 2/14 Jan 2/14 Bergmame, Dean Direct Ownership Common Shares 10 - Acquisition in the public market 853 $5.37
Jan 2/14 Jan 2/14 Heskin, Michael Andrew Direct Ownership Common Shares 10 - Acquisition in the public market 853 $5.38
Jan 2/14 Jan 2/14 Jewell, Donald Direct Ownership Common Shares 10 - Acquisition in the public market 1,037 $5.38
Jan 2/14 Jan 2/14 Maslechko, William S. Direct Ownership Common Shares 10 - Acquisition in the public market 583 $5.36
Jan 2/14 Jan 2/14 Desbiens, Michel Direct Ownership Common Shares 10 - Acquisition in the public market 1,507 $5.36
 
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agent99
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