Organic milk production is declining due to profitability for...

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Dixie Chick

469 Posts.

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15/11/23

16:10

Post #: 70919762
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Originally posted by sydney6791: ↑

Times for a new AHF, finally. Wish new board can remain the cooperation With Yiqing food and one director will be appointed from Yiqing, if so this should be game changing for AHF shareholders.

fundamentals still quite okay, operating 3 dairy farms, 1200 dairy cattle milk every day, newly built formula plant, I reckon current net tangible asset still worth 4c per share.

Yiqing is good at soft drinks, it’s products are popular in China, some also selling in Australia.

in my opinion,
1 the new board should suspend AHF’s own brand formula production, fully focus on A2 organic milk production and sales. And step by step to expand the A2 milk production to 20million liters a year.
2 use the plant to produce infant formula for other dairy companies.
3 start to pr
oduce milk based drinks, or new brand soft drinks.

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Organic milk production is declining due to profitability for both processors and especially for the producers.

Uk. studies hasalso found that organic infant folmulas lack in iodine content and need to be substituted.

As for producing soft drinks and milk drinks isn't the plant set up for canning of powder. Surely there would be a massive cost to change if it was possible.

Surely producing product for markets that are over supplied is not the way to go. If farms had not been offloaded and turning the remaining into organic the company would now be a large producer of liquid milk and making profits.

IMO DYOR

AHF Price at posting: 1.8¢ Sentiment: None Disclosure: Not Held
2 Upvote

1 Great analysis

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