AHF australian dairy nutritionals limited

LT Holders feel good thread :), page-104

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    This is from memory and some announcements but AHF produces about 15-17 million litres of raw milk from current stock and farms. Any new farm acquisitions will increase this if they increase herd levels as well unless they are acquiring farms purely for stock feed and possibly calving.

    I think they currently supply that milk to either Fonterra or Saputo and I don't know who whether under contract or as a casual supplier. So exiting those arrangements and shifting the milk to their, yet to be completed, newly acquired CDC processing plant may take time and their milk production is still a bit cyclical.

    CDC has a current processing capacity of about 50 million litres of milk, as input, and currently receives about 50% of that from non-AHF dairy farms So by bringing in the AHF milk production to the CDC processing facility will increase processing throughput, what they through out the other side is up to AHF but at a guess I would be thinking they may well pursue the domestic milk market through Aussies Direct and WOW with a keen eye on the export market. The challenge with the export of fresh milk into China is many-fold but one of the issues NORCO had to tackle was shelf life. So its either ESL, UHT or fresh milk with a stunning speed to shelf (meaning air-freight) before it goes off.

    If you want to know a bit more about exporting fresh milk to China google "Norco" and search news over the last 2-3 years.

    Even though Norco is a Co-operative it is probably the closest, or at least most comparable, to what AHF is about albeit NORCO is a dairy co-operative and AHF owns its farms, also NORCO does cheese whereas CDC does butter.
 
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