Ann: Alterra Welcomes Shanghai Ground Food Tech Brownes Purchase, page-15

Hilarious though that the announcement is market price sensitive and yet the market doesn’t know why.

Alterra knows why I’d say. The deal is done or very advanced. It was most likely negotiated over the past year and specifically the last six months of silence whilst they waited for the Brownes deal to go through.

Given that domestic suppliers only treat China supply as an “outlet” beyond domestic supply there is no way they will be able to meet the supply requirements of CHINA and do so at a consistent flat rate.

They will need a world class system-5 dairy dedicated to supply the needs of China plus anything the local dairies can throw at them. If the local outlet supply was adequate, they wouldn’t have bought the plant. They would have just bought the milk. They couldn’t give a toss of making money out of this at the Aussie market side of things. They will be looking to feed a billion Chinese at a premium price.