Economic Fundamentals

The Group’s Purchase and Sales Contract of Raw Milk with Mengniu Dairy (Shangzhi) Co., Ltd.
(Mengniu Shangzhi) expired on 21 February 2016. The Group entered into a new milk sale contract
with Mengniu Shangzhi on 22 February 2016 on the same material terms as the previous contract.
The materials terms of the new contract include a milk purchase price of RMB 3.45 per kilogram and a
stipulation that the minimum quality of raw milk provided by the Group must have a fat content of
3.1%, a protein content of 2.95% and a SPC of no greater than 0.5 million CFU per mL. The Group's
new Purchase and Sales Contract of Raw Milk with Mengniu Shangzhi has a term of 2 years and
expires on 21 February 2018.


RMB 3.45 = approx 70 cents AUD.


Does anybody know the farm gate price per kg in Australia?