Re: US #2 Poultry Producer, Tyson, Looking to Expand - Mark
in response to
by
posted on
Nov 15, 2007 03:30PM
Mark,
I went back and read the AHD contract. Arguably, AHD has exclusivity in Brazil (the world's second largest poultry producer) until November 30, 2008. (30 Novembro 2008)
I have excerpted the agreement below. It is my opinion that AHD has one entire year from Dec. 1, 2007 to AVERAGE 500 kilos per country (13) in order to meet the minimums to retain exclusivity. EVEN IF they sold nothing between now and September 2008, they could argue, IMO, that they still had the possibility to AVERAGE 500 kilos/month/country with one whopping order at the end of the period.
I sincerely doubt that this is the form things will take. I suspect we will begin to see small orders of 25-100 kilos begin to come in from AHD (if we haven't seen them already) and that they will steadily increase until we see the averages hit the minimums for 2008 of 500 kilos/ month.
MINIMUM AMOUNTS: To retain exclusivity within a country within the Territory, AHD must sell the following minimum quantities of the Product within such country during each year indicated below:Year 1 (December 1, 2007- November 30, 2008): Average of 500 Kg/month/ country
I still think that this contract has the potential to be worth $68M over the first three years.
ConsideraĆ§Ć£o,
-zties