Ann: Land Acquisition - Dambadjie Springs, page-21

Yes, I get all that and I had a quick look at the region they targeted and it is below the latitude where Norco in NSW operates so it may well have potential for dairy.

The two other pieces of their puzzle is they are pursuing a System 5 which tends to push out milk for commodity products so it also may sit well with WA being a net importer of dairy product (mainly cheese from the eastern seaboard) but where is the milk going to? Brownes Dairy is the closest processor that could handle their milk unless they intend processing on-site and don't under-estimate the benefit of that but non-one knows until they are further down the track. For a 1,600Ha the cost of developing a full functioning System 5 dairy farm is probably in the realm of $100m and then you could double that if it was to build a processing plant for processing milk on-site and the time-frame would be in excess of 24 months from the end of the current 12 months.

It's not an SGH balltearer where they are aiming for about $1.5-$1.8bn nor is it an incremental approach like AHF but it will need to raise some solid funds in the future after all the pre-planning work is done.

If they really wanted to take the proverbial bull by the horns for dairy in WA there is an emerging opportunity and SADA in South Australia actually has the key for them.