No worries

Just concerns.

Well, as an investor, the concerns to me are:

1. Milk supply;
2. Inventory;
3. China sales.

1.In May 2016, the milk supply issue seemed more scary. Some of the MG farmers here suggested the total milk loss through departures and retirements would total 15% to 20%. Then when you're down, even God has to put in the boot with climatic issues.

Now ADFC (allegedly) steals 1% of MG's milk supply with a $5.80 FMP offer. How does a Company their size come out with such an offer? Sounds like Bulla to me ... ahem, sorry.

http://www.weeklytimesnow.com.au/ne...c/news-story/131ac9874aeef899788a4dfd3f270fc0

It also sounds like MG better get the new CEO to work ahead of schedule.

2. Inventory has always been a concern. There were expectations of an inventory writedown 8 months ago. John Durie mentioned in an Australian article recently that MG has completely disposed of excess inventory. I wonder what his source is and it's reliability? Also, whether said disposal was above recorded cost?

3. Recorded data (I've seen) up to August 2016 seems to reveal that bulk ingredient sales have not improved. I note that WMP demand really kicked in about that time but also that sales declines affected Australia but to a much lesser extent NZ.

I expect UHT milk, cheese and Asian sales generally to be improved.

Roll on Feb 24.