Pig breeder Genus reassures on swine flu
Pig and cattle breeder Genus has reassured investors that it expects the current flu outbreak to 'have no material impact on its business'.
Impact: The flu outbreak
Genus shares had been rocked on the initial news of the virus. On Monday, they were down 7.6% at one point. Ironically, they then recovered to pre-Flu levels before tumbling again today, down 27.5p at 580p - more than 5% - by 11am, following the attempt to reassure shareholders.
'There has been considerable media coverage regarding the recent outbreak of influenza in Mexico and a number of other countries. Dubbed 'swine flu' it is a human strain of an H1N1 flu virus which has been found in humans and cannot be caught by consuming meat products,' the company said.
'None of Genus' pure line breeding animals is infected with influenza. They are kept under strict bio-security regimes in nucleus farms in the USA and Canada.
'Speculation regarding the impact of the outbreak has resulted in a reduction in pig prices and precautionary import bans of swine and pork products by some countries. Genus' extensive spread of worldwide multiplication farms makes it better placed than its competitors to maintain supplies in countries where such bans are in place.
'As a result, whilst keeping the situation under close review, Genus currently expects there to be no material impact on its business from the influenza outbreak and the trading outlook for the financial year remains in line with the board's expectations.'
Genus applies science to animal breeding. Its non-genetically modified organism technology is applicable across all livestock species but is only commercialised by Genus in the bovine and pork farming sectors. It is a provider of genetics and reproduction services, marketing in more than 70 countries.
In today's statement, it also reported 'increased price competition' as the US dairy sector slowed due to falling milk prices. It added: 'In the current economic environment, market conditions for Genus' customers in the USA and Western Europe remained challenging but continued to be less so in Genus' other markets.'
The company's results for the year to 30 June will be announced on 10 September 2009.
The fall and rise of Genus shares since Monday
Midas Extra share tips: Genus
From 26 February 2009
Verdict: The company is in an industry which is attracting increasing interest from farmers around the world and it is a recognised leader in its field. Chief executive Richard Wood is optimistic about the long and short-term prospects for his business and investors should be too. Buy. Read the full detail
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