AHF have got into their present situation by being all over the place. It is more profitable to do one thing and do it correctly.
In answer to your points.
1. If AHF is to produce other dairy products that would involve more expenditure to buy and install new plant. The existing plant is too small to contract pack for any volume.
2. I have never mentioned anything about being A2 milk most farmers are now producing A2 milk and high volume producers are receiving will in excess of $10.00kg milk solids.
3. Fonterra NZ for the 2023/24 have revised their farm gate milk price down due to a decreased demand for milk powder world wide.
China is producing more and more milk powder due to increase in milk production.
4. AHF only produce infant formula which would be hard to sell in a farm shop as it has not been a brand that is accepted by the market. The farms that still have tourists visit do not charge but the have cafes and retail stores, then you have to have the acceptance of the tour companies to visit you on the run.
Sydney where on earth do you expect the company to get 5,000-10,000 dairy cattle to export. They do not have the strengths nor expertise to run a feedlot or become a cattle exporter.
The cost to build an export feedlot would be a minimum of $1M and due to the weather conditions in Western Victoria could cost considerably more.
If AHF are to haave any chance of survival they need a new board with expertise in business and dairy farming and being all over the shop with ideas of making a $ all they have and are doing is running at losses at the expense of shareholders.
IMO DYOR
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