Wish the new board can respect the market respect the shareholders, well match what the company has with what the market actually needs, makes a substantial game changing and leads AHF grow into a larger scale Australian dairy company. I don’t think it’s difficult.
A: Consolidate the cooperation with Yiqing food, existing 1200 dairy cows could have produced 9million liter A2 milk per year, if Yiqing or Mengniu can offtake all of the fresh milk, step by step to raise more cattle, to produce 12million liter, 15m 20m , according to what’s purchase order could be. Export all of the fresh milk to Beijing. Even if net profit per liter is 30c, 15million liter means $4.5m net profit per year.
B, Work together with Yiqing, import bulk milk powders from NZ( much cheaper than Australia) , using the existing infant formula plant to produce 2 million can 900g formula per year at lost equal or less than $15/can. As long as Yiqing can help AHF’s products be registered with China’s custom. This will be absolutely a game changing and will result in AHF becoming a real Australian infant formula manufacturer. MC over 100m is fair enough even if only 2 million cans produced. Imagine the wholesale price is $17(or 80 Chinese yuan per can) , $2 net profit per can means $ 4m net profits per year for the company.
( many years ago, such formula costs $9-10/ can, my $15 estimate based on the milk powder price increased since then , but AHF has own production facilities to offset some increased costs)
Personally, I don’t think A or B or A&B is difficult to achieve because these changes are totally based on what the company currently has, where it’s strength is, plus A2 milk supply is limited atm.
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