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Oksinay

Camit closing

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It's not that often I wish I were a squillionaire but now is such a time. If there is any attempt at crowdfunding then count me in, although I personally doubt if we have the numbers in Australia.

 

 

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I agree, honestly a good business too heavy in debt.

 

Too nice a guy running it too.

 

 

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If it is just the debt, there should be hope of a financial restructure and continuation.

 

As an example, there are very few farms which can pay off a big loan and survive, but most farms can carry on ok if the debt is cleared. Sometimes a foreclosure sale is needed to wipe out the debt.

 

If the business is sold under the hammer, is any chance some good guys could step in with a bid?

 

 

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If it is just the debt, there should be hope of a financial restructure and continuation.As an example, there are very few farms which can pay off a big loan and survive, but most farms can carry on ok if the debt is cleared. Sometimes a foreclosure sale is needed to wipe out the debt.

 

If the business is sold under the hammer, is any chance some good guys could step in with a bid?

Banks have a lot to answer for regarding the farm debt. Australia can not sustain the money system which we have in Australia at the moment.

 

I can not get my head around the value farm land and it's return on capital and we have the experts out there banging on about what the return should be. Nothing is adding up.

 

So here we have another business gone how very sad for Australia.

 

KP.

 

 

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There is something seriously wrong with the world's priorities when bank execs value themselves at millions per annum, yet farmers who feed us are financially starved out of existence. And there is more, much more but you all know what I mean.

 

 

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cscotthendry. I can not give you enough ticks for that comment. The pollies sit on their hands and do nothing.

 

No wonder the Australians are getting sick of just paying.

 

KP

 

 

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cscotthendry. I can not give you enough ticks for that comment. The pollies sit on their hands and do nothing.No wonder the Australians are getting sick of just paying.

 

KP

KP:

 

In fact the pollies actually create this situation because they are mostly in the pocket of Big Business and the already very rich.

 

 

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Yep farm land does not in general pay the same return as bank interest.

 

So why would you invest in farm land? The answer is appreciation of the land value.

 

This appreciation, added to the return, exceeds what you could get putting your money in the bank. Of course, you have to sell to realize the capital gain.

 

In the meantime, you have to appreciate the lifestyle and not worry too much about getting less than the minimum wage for a whole lot more work.

 

I would just love to be able to afford the help of one of the many newstart young people in the district but this is a pipedream.

 

 

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Farming is one of the most precarious past times you could indulge in. You are working for

 

(a) The bank who can unilaterally change the circumstances of your loan.

 

(b) the chemical companies.

 

© the wineries in the case of wine grapes where they don't pay you for the best part of a year, and IF they go broke you line up with the rest of the creditors. They pretty much tell you what they will pay also

 

(d) when you have a good crop so do most others, so the price collapses, unless you are at the high quality end of the market which is lower volume and less profit/acre already..

 

(e) you are at the mercy of the elements, and pests which are hard to predict.

 

Farmers aren't called "Peasants" all around the world, for no reason. Nev

 

 

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Of course, you have to sell to realize the capital gain.In the meantime, you have to appreciate the lifestyle and not worry too much about getting less than the minimum wage for a whole lot more work.

And both these aspects make it next to impossible for our young farmers to get a start, so they are lost to trades or the mines.

 

 

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......in some areas where farmers haven't changed to match the market.

 

In others they are driving Totota Safaris.

 

Same as it has always been.

 

 

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Funny old world isn’t it?

 

Camit eventually created (with little hindrance or help from Jabiru or anyone else) quality world class engines that were light, powerful, economical, reliable, well placed in the market, the right price, etc, etc, and (in my opinion) these engines would have been around for a long time, developed over time into something even better with a wide range of options, and probably more designs and engines sizes.

 

They certainly had a slowly growing future and an emerging market – I placed an order for a full 3300 engine days before the sad announcement, however it must be said they never asked me for any payment.

 

Camit would have grown, profits risen and everybody would have been happy.

 

We are now stuck with circa 1940’s technology heavy fuel gobbling Lycoming & Continental types.

 

Or expensive complex high revving Rotax with limited power.

 

Or a few newish designs that time will only tell if these are any good.

 

Or a handful of oddballs derived from the auto industry.

 

Or a new offering from Jabiru that, if all the gossip and hear-say is true, is an engine cobbled up in their factory from out-sourced parts and suppliers on a cheapest bid basis made by people who potentially have no or little aviation expertise or experience.

 

To answer the question pondered by many as to why Camit couldn’t survive, my answer is simple “greed”. Bankers and investors have no foresight, soul or passion their god is “hard cash” on a quick return basis.

 

When the vultures come to clean the bones they will do so with no thought or consideration for anybody or what could be. “Can we make a quick buck they will ask themselves?” if the answer is no they will break it up, sell it off and claim their exorbitant fees, and the few scraps that are left (if any) will be thrown begrudgingly to the truly deserving in the supply chain.

 

I would like to think I’m wrong, however having seen this all too often and too many times it pains me to say I doubt that I am, unless somebody with hindsight and passion, and not looking for a “quick buck” intervenes.

 

This ladies and gentleman is the general mentality of the modern world we all live in regardless of continent or country.

 

 

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