Ann: Trading Halt, page-16

Dairy farming is very seasonal, even more so in the Western District, which relies on natural rainfall rather than irrigation. As Grant has indicated, farm production has actually improved. This has been due to excellent Spring rains and improvements in water conservation and animal husbandry practices. Seasonal production in dairying always peaks in September and December quarters. Sadly, Sept Qtr receipts have fallen $1.63M or 21% on PCP. Dec Qtr has fallen $922k 0r 12.7% on PCP. Upstream operations (dairy farms) have improved significantly, which reflects poorly on the unsatisfactory performance of the downstream operations of CDC and their marketing efforts. The upcoming March Qtr results and commentary will be interesting, especially as the farming areas have been affected by low rainfall and bushfires in CY 2018.

The company has the right strategies in place with a swing to organic farming and produce, focusing on development of brand names, bespoke products and niche markets. Unfortunately, this will necessitate heavy CAPEX in R&D, mfg plant and marketing promotions.

The CEO previously ran King Island Dairy. which developed market leading specialty dairy product brand names, before eventually being taken over by National Foods.

To quote Sunlover "Timing is the key. Timing is everything."