You may misunderstand , I am talking about the strategy/direction of the new board, but you are talking about current daily production. Our difference just like what a manager should think/ plan between what a production line worker thinking.
I believe your figures are correct, but my suggestion is to import milk powders to produce formula, not using the fresh milk.
you also should know the future brand is not produced in this plant at all.
I don’t think AHF’s own products have credibility for overseas customers, they can’t sell some if there is no change, that’s why I suggest them to respect the market, either to produce the lower-end own formulas or contact manufacturing for other dairy companies , if the cost/tin less than $15, wholesale price $18, (RMB 85/tin) there is still huge market demand in China. Different strategy, but it may work well. Many Australian small dairy companies or even not dairy companies tried this before, they all failed because they can’t get registration with China’s custom. Yiqing is a large scale Chinese state owned company, I believe they could have the ability to solve this issue. But I don’t think Yiqing has interest for the high end A2 formula, very limited market in China for a new and expensive formula brand, but for the lower end 18/tin formula, there are still huge demands anywhere in China, totally different.
for any company, if it can sell off 600k tins per year, to increase the capacity to 2million tin is not a problem to worry in advance.
AHF Price at posting:
1.6¢ Sentiment: Buy Disclosure: Held
