1. Even the current board, they also planning to start contract manufacturing, or to produce other dairy products ( see its announcement)
2 depends on what is your partner/ distributor, pricing. Yiqing food is famous in China most because of its beverage products. For AHF’s A2 milk, wholesale price for the 1l bottle $2 is fair enough and still quite profitable, such products can be sold at $4/l in Beijing or Shanghai. But if it’s not A2, like you said, still difficult.
3, most of infant formula products in this world are using NZ milk powders.
4, their farm belongs to shareholders, if opens the dairy farm for tourists, let them know how a dairy farm running, how milk produced , plus sell some dairy products, to make few thousands for shareholders, why not do it?
cost of registered feedlot is not high as you imagine, 500k on facilities is enough for 1500 cattle yard, but it takes time to get regulation approved (12months +) . If the new board get rid of the Organic concept, to increase their milk production in my book they must build few feedlot. To export the live dairy cows purely depends on if they can receive orders of 5000-10000 cattle per year. Meanwhile the feedlot can feed their own cattle. Again, this is for the development strategy of the company, if export makes profit straight away, export the cattle, if no enough order just let the cattle to produce milk for the company, compared with other live cattle exporter, AHF has its strengths to run this business, if I were a board member, I would have started this business few years ago.
AHF Price at posting:
1.6¢ Sentiment: Buy Disclosure: Held
