Fund Overview
	Fund Assets
	Fund Benefits
	Performance & Financial Information
	Unit Prices
	Distributions
	Redemptions

 

Fund Update - Dispute with Baiada - 20 August 2010

RFM received notice from Baiada Poultry Limited (Baiada) claiming they have suffered a loss due to ventilation, drainage and some farm management practises. In the notice Baiada is seeking up to $3m in compensation. RFM does not agree with Baiada's claims.

David Bryant, the RFM Managing Director, has now met with an owner of Baiada and it was agreed that both parties would seek to work cooperatively and expediently to settle the issues without resorting to litigation.

Based on current discussions and independent expert advice, it is RFM’s view that any settlement will have a non-material financial impact on the CIF.

RFM continues to actively work at maintaining a positive working relationship with Baiada for the long term duration of the Grower contracts.

Further information will be made available as these developments progress, via either direct correspondence or through the RFM website. Investors should contact Investor Services with any queries.

Back to top

Fund Overview

The RFM Chicken Income Fund (CIF) aims to provide investors with competitive risk-adjusted returns in the form of quarterly income payments, generated by contract chicken growing activities.

The CIF currently owns chicken infrastructure consisting of 16 separate operations in Griffith, New South Wales and Lethbridge, Victoria, comprising a total of 154 poultry sheds. The sheds have a throughput of 30 million chickens per annum and the CIF is the largest single contract chicken grower in Australia. Due to the CIF’s farm size, scale and investment in cutting-edge technology, it is a highly efficient operation which achieves very competitive grow-out times and feed conversion rates.

The income from the chicken growing activities is supported by Rural Fund Management's (RFM) 20 and 30 year chicken (broiler) growing contracts with Baiada Poultry Pty Ltd (Baiada). Baiada purchased Bartter Enterprises Pty Ltd (Bartter) in 2009 with whom the original contracts were negotiated.

Baiada Poultry Pty Limited is a privately owned Australian company based in NSW which provides premium quality poultry products throughout Australia.

Table 1: CIF Summary

¹ The Indirect Cost Ratio is expressed as a percentage of the net asset value of the Fund. This includes GST reduced by the estimated Reduced Input Tax Credits. Refer to the Product Disclosure Statement for details of fees and costs.

Back to top

Fund Assets

The original assets of the CIF consist of the 10 chicken broiler farms purchased from Bartter between December 2003 and June 2004. These farms, which are located in Griffith within eight kilometres of Baiada's processing plant encompass a total of 110 established sheds owned and operated by the CIF. In 2006, the CIF completed upgrades for these sheds to achieve higher ventilation speeds and thus operate more efficiently.

In 2005 the CIF purchased an agricultural property for $2.3 million in Griffith, NSW for the construction of an additional 24 broiler sheds, using the latest in tunnel-ventilated shed technology. The chicken sheds constructed on this property were grouped into two new farms known as Farm 67 and Farm 68.

The acquisition of this property was considered by RFM to be an excellent opportunity for the CIF. It is located near Hanwood, approximately 10km south of Griffith and close to the Baiada processing plant and the existing CIF farms.

In 2007 RFM completed construction on 20 broiler sheds on properties located near the town of Lethbridge, Victoria, approximately 30km north west of Geelong. RFM has negotiated 30-year contracts to supply broiler chickens to Baiada's Geelong processing plant. The 20 sheds are clustered into four farms of five sheds each and incorporate the latest developments in design and broiler-rearing technology and operation in Australia.

Table 2: CIF Assets

Back to top

Fund Benefits

• Proven track record. The CIF has been operating since December 2003. During this period, RFM, on behalf of the CIF, has successfully managed chicken growing activities on all chicken sheds acquired from Bartter as well as newly constructed sheds recently brought into production.
  
  
• Consistent returns. The CIF has consistently paid quarterly distributions to investors in line with original forecasts.
  
  
• Stability of income. Long-term chicken growing agreements are in place with Baiada Poultry Pty Ltd for all sheds. Baiada has fulfilled all obligations under these agreements, with regular grower payments by Baiada to the CIF.
  
  

Back to top

Performance & Financial Information

Table 3: CIF Financial Year Returns

Returns inclusive of Franking Credits.
Past performance is not a reliable indicator of future performance.

 

Table 4: CIF Rolling Annual Returns

* Rolling annualised figures.
¹ Effective return including Franking Credits distributed to Unitholders.

Back to top

Unit Prices

Unit prices are quoted in Australian dollars and are calculated on the 15th day of the month or the following Business Day, if the 15th is not a Business Day. They are based on the NAV calculated using the preceding month's financial results.

Click here for historical unit price information

Table 5: CIF Unit Price History

Back to top

Distributions

Please note that as the CIF is a public trading trust, all distributions are taxable in the year of receipt.

Table 6: CIF Distribution History

Back to top

Redemptions

Each year RFM intends to make a withdrawal offer in accordance with the Fund Constitution and the provisions of the Corporations Act regulating offers for non-liquid schemes. Each withdrawal offer will be open for acceptance for at least 21 days.

Withdrawal Offer documents will be posted on the website and mailed out to all CIF investors prior to the Offer being made available. Advisers with clients invested in the CIF will be notified of the withdrawal offer by email.

Next Redemption: Anticipated May/June 2011

Back to top

• Offer Documents
• Newsletters
• Management Fee Changes

  26 February 2010

• Half Year Report

  31 December 2009

• Annual Report

  30 June 2009