Can't make money out of milk, page-2

I agree that its a speculative play, however here are my comments.

1. Farmers struggle to make money. True. Sometimes though it can be because of a lack of capital and backers. In this instance, bankers and farmers are working together + a source of capital if needed.

2. My understanding is that milk prices are at all time lows. I try and buy in at the bottom of an cycles. AHF farm operations are cash flow positive at the moment, not at all reliant on China. Any farm gate milk price rises will fall quickly to the bottom line.

3. Agri consolidation plays aren't always good in the long run, but some can work. Look at Costa etc. Scale does help in some ways, especially where you can get properties nearby.

4. I disagree its all about China. Moving up the value chain is good, processing, yoghurt, cheese etc, even domestically there will likely continue to be a market for these products so combined with an export opportunity its a nice diversification move.

Still highly speculative, but so far I think management have demonstrated a good job of just knuckling down and getting on with the task of growing the company. If they keep it up, I think shareholders will be rewarded.