Corporatising small niche family businesses isn't very profitable and often causes more headaches than its worth. Often they are better off staying as family business and growing out from there.
Specialised and highly refined processed dairy products from protein by-products (e.g. whey) is an expensive game to get in to but yes the return is there. Problem is WA is the wrong place to be doing it as its problem is a basic shortfall of simple dairy products like drinking milk, butter, cheese, creams etc. Secondly the milk supply across the country is less than the processing capacity and that will present a whole different set of challenges for WA as well as in other key markets in Australia.
Someone once commented that AU will end up being a net importer of dairy product as we blindly chase the IF export market and allow offshore investment of our dairy industry. All in pursuit of a better retain on funds. Well we are there now as more and more Arla (ex-Europe) product appears on the streets replacing the butter shortfall.
What does it mean for 1AG? Can't figure this one out except for the one thing I am staying silent on and besides I know Andrew is not interested in it as it would compromise the share register holdings to get it up and running so not get Board support.
