Ann: Listing Rule 3.17A Notice, page-26

I haven't checked the figures as that is operational not governance which is what the thread started out as.

Suffice to say so long as they secure sufficient good quality milk to keep the processor at optimum performance that is fine except for one small mater. For infant formula to be profitable for the business and to ensure a continually refreshed supply chain they require scale and THAT is missing in the case of AHF and that will be its undoing. History here might remind folks that AHF got deleted off the retail shelves of local supermarkets because it failed to maintain supply due to lack of scale of production.

The powder production has been a fanciful dream of the CEO since he first started out and today it may be real but it lacks scale in a major sense.

IF they had got their proverbial together a few years ago they could have acquired a decent processing plant with three large (i.e. over 100ml pa dryers ea) that were operational and up for sale. Contract drying for others in aidition to their own would have put AHF on the path to a lot more than what they have right now. Or they could have stayed with the initial strategy of dairy farm aggregation and picked up other aggregators who exited the business not so long ago including the likes of Warrakirri, Shannon Group, BFC, ACE Farming and even Coomboona from Gerry Harvey.

Opportunity lost because of small minded thinking and that small minded thinking was whilst the current protaganists who seek to remove a couple of the Directors were at the helm of the business absent one of them who was in the shadows.

The current Governance team may not be ideal but they are a long way ahead of what AHF has ever had and for AHF to survive they need to remain and not be broken up by some tired old worn out ego's who want a second chance to screw it up, again.

How many cows they have or dont have is immaterial to the primary risk for AHF. Sourcing milk may well be an operational risk now with the price of raw milk and the power brokers playing games with splitting milkfat & protein due to export demand for valuee added products.

Take a look at the Market Capitalisation of AHF it is sub $AUD50m after all this time???

Poor governance, poor strategy and poor management.