Home' Trinidad and Tobago Guardian : October 23rd 2014 Contents INVESTMENT OPPORTUNITY
TABAQUITE FARMERS LIMITED (IN RECEIVERSHIP)
In my capacity as Interim Receiver of Tabaquite Farmers Limited (In Receivership) I am offering the assets of the Company
for sale as either a complete package or on an individual basis as outline:
ASSETS FOR SALE
Watts Road, off Torrib Tabaquite Road,
Trinidad West Indies.
approximately 10.34 acres.
2,360 sq. ft.
6 Sow shed - 5,000 sq. ft. per shed
5,085 Sq. ft.
Gilt & Fatteners Shed
4 Sheds - Approximately 9,000 sq. ft. per shed
10,140 sq. ft.
5,610 sq. ft.
Sow and Weaner Shed
5 sheds - Approximately 1,200 sq. ft. per shed
16,325 sq. ft.
Fatteners / Growers -
Average 150 births per week
Slaughtering House and Equipment
(Blast freezer 40ft X 20ft, 1 chiller 60ft X 30ft
182 farrowing crates, feed conveyor systems, feed bins
Slaughtering and Maintenance equipment
Water system tank capacity 100,000 gallons
Waste management system, compost equipment,
Diesel generator (350 kv240 amp 6 cylinder)
ISUZU 3 Tonne Van (TBE 9136 & 9135)
1 Toyota 3.0 Hilux - TCM 1338
2 Toyota Dyna (TAW 6673 and TAW 8296)
Filling Cabinets, Office Chairs, Computers, Microwave,
Photocopying Machines and Refrigerators.
To obtain a Confidential Information memorandum and arrange a site visit please contact:
Mr. Varune Mungal
Interim Receiver - Tabaquite Farmers Limited (In Receivership)
c/o Business Recovery and Advisory Services Limited
86, Seventh Street, Barataria.
Trinidad West Indies
Telephone: 868-681-9235 or 868-326-7328
1. Terms of payment are 10% down on acceptance of offer with balance in ninety (90) days.
2. The Assets would be sold on an "As Is Where Is" basis subject to all outstanding Rates and Taxes and outgoing.
3. The Receiver does not bind himself to accept the highest or any offer.
Mr. Mungal is solely acting in his capacity as Interim Receiver of Tabaquite Farmers Limited (In Receivership) and not in his
own personal capacity
To anyone living in a developing
country that is not an oil-pro-
ducer, the present drop in the
price of oil is very welcome.
Ever since the world's major oil-producing
nations, through the Organisation of the Petro-
leum Exporting Countries (OPEC), dramatically
increased prices in 1973, the economies of devel-
oping countries have struggled. The purpose
of the price increase then was to punish the US
and Western European countries for their support
of Israel against Arab nations in a war in October
However, since the effect of the oil price was
global, it hurt non-oil producing developing
countries much more than the US and Western
Europe which had greater capacity and resilience
to recover. The injurious effect was most debil-
itating to the manufacturing sector in these
developing countries, but no economic activity
was excluded from the damage.
In 2008 and 2009, the price of a barrel of
oil rose as high as US$143.68 although, on those
OCTOBER 2014 • WEEK FOUR www.guardian.co.tt BUSINESS GUARDIAN
COMMENTARY | BG19
occasions, commodity traders were blameable and not
the governments of oil-producing countries.
At the time of writing, the price of Brent crude oil has
fallen to US$84 a barrel, with predictions by experts that
it could drop to US$75.
In many developing countries, including those in the
Caribbean, there will probably be a delay before the benefits
of lower oil prices reach the productive sectors of the
economy and the consumers. This is because governments
and oil importing companies hold on to windfall surpluses
for as long as they can.
But, it is really in the interest of governments, the con-
sumer and the private sector that the benefits of today's
lower prices be distributed quickly. Lower oil prices for
every sector of the economy will help to stimulate and
spread economic activity that is now vitally needed. The
British Financial Times Newspaper estimates that on a
global basis, "the decline in prices would generate a US$1.8
billion daily windfall, about US$660 billion annualised".
The reason for the present drop in oil prices is not a result
of humanitarian concern for the poor or the effect of market
forces. Instead, it is economic politics at play. The government
of Saudi Arabia had decided that, in its own interest, it
wants to keep oil prices low so as to maintain its share of
the global market. Simply stated, the Saudi government
feels threatened by the booming shale oil and gas sector
being led by the US whose oil production has increased by
65 per cent since 2008.
Authoritative studies say the US "shale production has
reached 8.7 million barrels a day, about a million barrels a
day more than just a year ago and the highest level in nearly
a quarter century". This has caused a significant reduction
in imports from OPEC since 2008, forcing many of their
members to compete with one another for markets.
In deciding to keep prices low, the Saudi calculation
appears to be that if returns from oil sales decline, the
fracking companies (that produce shale oil and gas) will
be pushed into uneconomic situations forcing them either
to cut back or suspend production. Should this gambit
work, conventional oil producers such as Saudi Arabia
would continue to receive significant revenues over a
longer period of time, and they would retain the reins of
There is evidence to suggest that the Saudi calculation
is shrewd. When commodity prices fall, high-cost producers
are hit first and hardest. In the Caribbean, the decline of
the sugar industry is the best testament to that reality.
As oil prices have declined in the past few months, shale
oil and other non-fossil fuel projects in the US have either
been shelved or cancelled.
Whether in agreement with Saudi Arabia or just to
maintain their own market share, other OPEC members
in the Middle East---Kuwait, Iraq, Iran and the United
Arab Emirates---have also cut their prices.
But not all OPEC members are happy. Particularly
unhappy is Venezuela which needs oil prices at about
US$115 a barrel. The Venezuelan government is so displeased
that it unsuccessfully called for an emergency meeting
of OPEC to discuss the situation. The view of the majority
of the organisation's member states is to defer any debate
to an already-scheduled meeting in Vienna on November
27.In the Caribbean, T&T is the major oil producer and
its national budget is based on oil prices at US$80 a barrel.
Even though T&T is not a member of the 12-nation
OPEC, it could hardly compete effectively and keep market
share if it pitches its oil price at a level higher than OPEC
members. Therefore, it will lose revenues. No doubt, the
authorities in Port-of-Spain are already constructing a
plan for coping should the world price for oil drop below
the crucial mark of US$80 per barrel. The country is for-
tunate that it has a substantial Heritage and Stabilisation
Fund from which, if necessary, the Government can draw
to help it through fiscal and budget adjustments.
It is left to be seen if a drop in revenues to Venezuela
will have an adverse effect on PetroCaribe---the scheme
under which Venezuela sells oil to many Caribbean
countries through a part-loan arrangement. In the short
term, it is unlikely that the Maduro government in Caracas
would revise the terms. However, if a suggestion by
Kuwait's oil minister Ali al-Omair comes to pass that
prices could drop to around US$77 per barrel---US$38 per
barrel less than Venezuela needs---PetroCaribe will
undoubtedly be reviewed.
The writer is a consultant, senior fellow at London
University and former Caribbean diplomat.
Oil prices fall sharply:
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