Despite achieving good quality skins, 75% of Padenga’s skins achieved 1st Grade; FY20 82%; a shift in consumer dynamics meant that 56% of crocodile skins in inventory at the close of the period are no longer desirable for the premium market. The group had previously noted a shift in favour of smaller handbags and therefore smaller skins due to a defensive Asian market. Skins 40cm/+ size were rejected regardless of quality and were/will be sold at reduced prices negatively impacting Padenga. Sales volumes for the current period remained firm at 8,298 skins (1H20 5,463). No export meat sales were made due to COVID- 19 restrictions. Revenue for the crocodile business was down 25% from US$6.40mn to US$4.78mn. The business contributed 23% to Padenga’s total revenue. Fair value adjustment fell as the larger crocodile skins in inventory are expected to fetch lower prices. Resultantly, the crocodile business’ loss for the period was US$1.87mn from a profit of US$3.5mn in 1H20. Looking at the Alligator Segment; volume of skins sold was down 48% with the bulk being lower grade skins sold to best advantage. The Texas operation remained hamstrung by oversupply and reduced demand in the market for watch band size skins. The operation had been moving towards medium and large skin production because of improved margins in those size ranges but the shift to smaller skins that was also experienced by the crocodile business resulted in Tallow Creek having skins that could not be sold at viable prices. Revenue for the alligator business was down 50% from US$2.31mn to US$1.16mn (contributed 5% to Padenga’s total revenue).