KEY POINTS:
The rise in PPCS's bond yields to 19 per cent yesterday suggests investors are deeply concerned about the meat company, analysts say.
The Dunedin-based company, one of the country's biggest employers with nearly 9000 staff, said there were no specific issues within the company.
But the rise in yields reflected a poor half-year result and "some issues within the meat industry of which the exchange rate was a key factor ".
"I can only assume people are putting all the information together and getting a little bit nervous," chief financial officer Rob McFarlane said.
"There is nothing specific out there about PPCS. There is nothing untoward going on. I am not aware of any rumours in the market place."
He noted the country's second-largest meat company, Affco Holdings, last month reported a March half-year loss of $18.4 million with nearly $100 million negative cashflow.
Since then the kiwi dollar had gone up significantly to a record US76.4c this week, while falling lamb prices and resistance by European farmers have made trading even more trying.
Investment adviser Chris Lee of Project Resources said he believed farmers were likely to wear substantial losses.
As a farmer-owned co-operative, PPCS was able to weather tough times as farmers were prepared to dip into their pockets to help the company.
Bond trading specialist David Spate of Direct Broking said the rise was "a pretty major move as far as fixed interest securities go."
- NZPA
