Key concept and questions (KCQs)

To be honest a person like me that do not have a lot of knowledge about agriculture industry and understanding of investment perfectly it was a big pain researching Webster Limited 's financial situation.

I took a fair bit of time reading the Annual statement. As it was complicated for me and there was some inputted financial statement was available between 2010 - 2011 but not on 2011 - 2013. So after reading again and again, I realize it is because it was quite a change of the operations. As some product was discontinued but after two years they remain the same and did not discontinued the products that's why I did not get that statement for the further two years. But that is not the main point or a big issue effecting the business.

I realize the business is now growing faster and more stable according to the annual statement that I have research. My understanding of Webster Limited after research, I realize the area that is most important for the business is to produce more and sell more. As the limited field/ orchards available there's a certain controlled amount of products will be produced each year. But if the field/orchards are expended, this is when they could produce more products and sell more to each more profit.

Also I realize Webster Limited is stable earning company they might want to reduce their amount of share that is listed as public shares as there is a big amount of share paid to dividends. But that is definitely not a main way to reduce expenses.

What are the challenges of Webster limited?
There is a few challenges spotted after researching of business news articles.
Challenges of Field Fresh Tasmania:

Cost of product.
As there is many crops in Australia, a commodity such as onions is subject to changing market prices; therefore, local growers must compete with cheaper imports due partly to the high Australian dollar. Exports conversely, are more expensive for the same reason.
-Which than effects that the overseas buyers would considered their local products more as it would be much cheaper than Webster products.

Labour costs.
The cost of doing business and compensating workers in Australia rises at a faster rate than overseas competitors.
-Which than this might causes imported products to than be cheaper than locally grown due to cheaper labour costs so that the prices to maximum imported products can still be cheaper than the price of their products even though was a minimum profit business Also it might be challenging as Webster exports their products to overseas but it might be too expensive for the overseas buyer.

Supply chain issues.
Having lost the International Shipping Service, FFT must now rely totally on a feeder service from Tasmania to Melbourne, Victoria to export its products.
-This costs the transportation fee to rise as there is a need to transfer from Tasmania to Melbourne before it could export directly to international buyers.

Why do we invest Webster Limited even though there is so many challenges? 
Overall, as the business faces challenges but they still making enough funds as Field Fresh Tasmania is not the only operation of Webster Limited. This is good example why to have core-operations. As if one core-operation does not work well, you will have another operation to maintain your funds and incoming profit.

Walnuts Australia considered to be success of Webster Limited at the moment. The company has raised enough capital to expand its walnut orchard estate in Riverina, where the company recently purchased another 1,000 hectare property. This property will be developed over the next 4-5 years. A portion of the funds will also be applied to establishing the walnut cracking facility, as “one of our main objectives is now the push into kernel [distribution],” says Mr Titmus.

After research of the company, I certainly thinks that it is worth it to invest in Webster limited. The financial statements stated that the business is growing and making profit well. Also, according to articles related to Webster Limited, it was stated that company will continue expending and produce which means it is more opportunity earn more profit.

Also, my understanding of Webster Limited, it is a stable investment. According to financial statement, shareholders had been paid with high dividend. If the operations was not earning profit, the shareholders wouldn't receive high amount of dividend.

According to financial statement, and business article, http://www.businessinfocus.com.au/index.php/2011/10/webster-limited/ . I realize that company had highly reduced bank debt over the last 12 months. It means that company had earn a stable profit to be able to pay of debt and also other expenses yet running the business stably and planning to expend then business.


Other related articles supports investment of Webster Limited:
http://nutindustry.org.au/files/nrteUploadFiles/122F042F201313A373A32PM.pdf
http://www.theadvocate.com.au/story/2090855/field-fresh-tasmania-18-million-onion-factory-investment/
http://www.topstocks.com.au/stock_discussion_forum.php?action=searchgo&searchtype=fid&fid=1716
http://www.bloomberg.com/quote/WBA:AU
http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=WBA:AU