Quick-thinking Victorian company spots the Asian growth opportunity of the decade. Read on and learn how you can grab a share of a $7bn windfall — plus income for life…
Chinese shoppers are so desperate for one ‘luxury’ product they’re stripping shelves bare… But one company from Allansford, Victoria has more than enough to supply Chinese stores many times over…
In fact, demand is so high for this product, the company supplying it is able to mark up its prices by SEVEN TIMES. Make a small investment in this firm today and you could start profiting from this windfall as early as November…
Dear Reader, ‘If I can capture just 2% of the market, that’s 26 million people buying my product!’
That’s why every company dreams of doing business in China.
Imagine you could get $1 from each of those consumers. That’s $26 million in sales right there.
In the next few minutes, I’ll reveal an Aussie company on the verge of doing exactly that.
If they can get their product to market in China, they’ll be able to sell it at prices up to SEVEN TIMES higher than in Australia. That would change this small business, started by a bunch of farmers in the 1880s, into a major global company.
This company is looking at a potential $7 billion increase in their annual revenue. If you make a small investment now, some of that could be coming to you. Just think of how that could change your retirement plans!
I’ll get to the specifics in a moment. First, an introduction…
My name is Nick Hubble. I’m editor of The Money for Life Letter.
Every month, I research new, exciting and surprisingly simple ways to help Aussies generate money for retirement.
I don’t talk about term deposits (which offer a measly 4% these days), super funds which returned an average of -0.17% over the last five years), or any of the conventional retirement ‘wisdom’.
Instead, I look at everything from getting major companies to pay for your retirement and investing in fine wine, to slashing your medical bills with genome sequencing and the best overseas bolt hole for Aussies.
The days of getting a job straight out of school, working for forty years before retiring to live off your pension are over. The conventional wisdom about retirement investing just doesn’t work anymore, and that’s why I started The Money for Life Letter to share ideas with Aussies just like you.
Some of my ideas are about preserving retirement wealth so you can actually enjoy your golden years. But I also look at ways you can make money too — particularly how to generate income streams.
Basically, I look into any opportunity that can help my readers live well in retirement without ever having to worry about running out of money.
The company I’ve uncovered today is one of those opportunities.
Let me tell you…
Why Avalon airport could be your gateway to regular income in retirement
Ever been to Avalon airport?
I have once. By mistake. This little airport, located miles from Melbourne’s CBD, doesn’t see a lot of action.
People usually only end up there if they’ve made a mistake trying to book flights from Melbourne’s main airport at Tullamarine.
It’s the last place in the world you’d expect to discover a company helping itself to part of a $7 billion a year revenue stream
But that’s exactly what’s about to happen…
The idea began with a harebrained scheme back in 2011...
The plan was to load 110,000 litres of one product you can’t get easily in China on to a jumbo and fly it from Avalon airport direct to Beijing.
Why?
Because Chinese consumers would happily pay seven times the Australian retail price.
A test flight carrying the precious cargo earlier that year had been a success.
‘Formal arrangements’ were made with distributors in China. Stores had shelf space ready to fill. Chinese customers were clamouring….
And if everything worked as planned, Melbourne’s Avalon Airport was standing by to send three shipments a week.
At stake for one small Australian company was a cool $105 million in annual sales revenue. More than that, they’d gain a crucial foothold in the fastest growing consumer market in the world.
Shareholders in this Victorian firm would be in for a huge payday.
But the flight never took off.
The customers were never served.
And the company’s share price tumbled.
What went wrong?
Put simply: Chinese customs weren’t willing to guarantee the goods would pass through quarantine within 17 days.
That’s not much good when your product goes bad after one week!
As the company’s CEO said, ‘You don’t want to be stuck with hundreds of thousands of dollars’ worth of product at some foreign airport’.
The Australian company missed out on an incredible opportunity because it failed at the last hurdle.
But it gets worse for this little Aussie firm. You’ll never guess who jumped on the bandwagon instead…
The Kiwis! That’s right, our friends from across the Tasman grabbed this opportunity with both hands.
New Zealand politicians nabbed the trade deal that Victorian Premier Ted Baillieu and Victoria’s Agriculture minister failed to clinch on their trip overseas in 2012. And Kiwi suppliers have been raking it in ever since.
But the tide has turned back...
Because of two big mistakes, the Aussie deal is back on.
And it’s back on BIG TIME…
Now an Aussie company is ready to land you a share of a $36.6 billion Chinese market
Companies have been getting rich trading with China ever since the days of Marco Polo.
But establishing trade with China is extremely difficult.
Marco Polo had to deal with bandits, wars and plagues.
Today’s companies don’t have it much better!
Patents are stolen, products copied, safety standards ignored, and corruption is rife. It’s difficult just to make your product available in China in the first place.
But not all goods can be copied. And for certain goods, quality is crucial. That means some foreign companies actually have the advantage over their Chinese counterparts.
The Chinese prefer quality foreign brands for one good in particular — milk.
I know that might be hard to believe.
But, the Chinese have two good reasons to prefer foreign milk.
Firstly, the Chinese don’t drink milk like we do. In fact, until recently they didn’t drink milk at all.
As recently as ten years ago milk was virtually unheard of in China. However, thanks to China’s growing prosperity, middle class consumers are just now starting to buy dairy products.
At the moment it’s only a small percentage of the population, but with a population as big as China it’s still an annual $36.6 billion market. What’s even more exciting is this trend has only just begun. This trickle of customers who think of dairy products as a luxury, will soon turn into a flood of consumers who buy milk as a daily necessity.
What makes this a golden opportunity for Australian milk providers, and for their shareholders, is the higher price Chinese consumers are willing to pay for milk.
The growing demand for foreign milk is a symbolic change for China’s consumers. Having a western-style diet full of western products is a sign of status.
And they’re willing to pay a lot for that status.
But more than that…
Quality milk is a matter of life and death
The second reason for China’s preference for foreign milk is much more simple — quality.
And it’s why Chinese demand for dairy is already creating 400% returns for a few cunning traders in Hong Kong.
I’m not sure whether you remember, but in 2008 Chinese farmers started adding a chemical called melamine to their milk. Adding melamine made the milk appear to contain extra protein. It meant farmers could sell it for a higher price.
Unfortunately, melamine is highly toxic.
Six children died and 300,000 fell ill before the melamine-tainted milk could be recalled. Consumers panicked, mothers desperately begged relatives overseas to send formula by mail, and powdered milk shortages occurred everywhere from Holland to Japan.
The scandal ended up bankrupting one of China’s largest milk corporations, halting Chinese milk trade with 11 countries, and even saw a farmer and a milk salesman executed for endangering public safety.
If you’ve never lived through a food contamination scare it’s hard to grasp how terrifying it is. Imagine waking up to find your morning milk is a potential killer. Now imagine everyone in the country is going through this – think of the chaos and panic that would cause.
With nine people dead from the one dairy scandal, you can understand why the Chinese consumers want to opt out of this mess and simply buy foreign milk.
To get an idea just how big an opportunity this Aussie dairy company has, you just have to look at how desperate Chinese consumers are to get pure, safe milk.
Right now, China has a bigger black market for milk than heroin
When the scandal first broke, it soon emerged that not all brands of milk were tainted.
China’s Sanyaun milk didn’t test positive for melamine and so demand for its goods soared.
The company’s share price rose 64% in one week.
Similarly, Japan’s Asahi happened to launch its own brand of milk in China during the melamine crisis. Their goods flew off the shelves even though prices were double that of local competitors.
My point is, having a foreign owned, quality brand selling fresh milk in China can translate to higher prices, more sales and a soaring share price.
But why don’t the local Chinese companies just get their act together and produce decent milk?
Well, they probably will — but not any time soon. The fact is China’s consumers have very little protection against bad goods.
There’s no Trade Practices Act, ombudsman, ACCC, or Department of Fair Trading. In a country with so few food safety regulations, and so many food contamination scandals like this, companies live and die by their reputation.
Now food buyers have lost faith in Chinese companies, they’re very reluctant to give local producers another chance. They prefer to simply buy foreign brands.
How strong is that preference?
News stories have emerged in Hong Kong of sellers known as ‘parallel traders’.
These middle men fill up containers full of foreign dairy goods in Hong Kong and then ferry them across to the mainland to sell for a tidy 400% profit!
In the 12 months before April this year, more people were arrested for smuggling milk than heroin.
If businessmen smuggling milk powder are seeing 400% returns, just think of the profits a legitimate company regularly flying in premium milk could make.
Here’s a simple, easy, and legal way you can make more than those smugglers ever will
Chinese dairy consumers are so sensitive to contamination scandals that even foreign companies aren’t immune.
Remember how I told you the Kiwis made two big mistakes? Here’s their first one:
New Zealand dairy behemoth Fonterra’s milk powder recently tested positive for elevated dicyandiamide levels. The levels were well within safe measures, but all it took was the suggestion of contamination for Chinese consumers to dump their milk, which lead to Fonterra’s share price taking a hammering.
The second mistake Fonterra made was to buy dairy producers in China.
In other words, the fresh milk Fonterra sells in China is coming from Chinese farms. That cancels out the advantages of foreign milk in the eyes of a Chinese consumer.
Fonterra has turned itself into a competitor of local Chinese milk providers.
Therefore, it’s no longer a premium foreign milk provider with an impeccable safety record.
That’s where the clever little Aussie firm I’ve discovered comes into its own.
And its timing couldn’t be better…
The great $7 Billion Dairy race is ON, and this company could put you in the lead
Dairy consumption in China has been growing by a staggering 25% per year since the later nineties, and is showing no signs of stopping.
Chinese distributors in negotiations with the company I’m recommending to you said that they wanted ‘as much milk as we can provide,’ and, ‘A billion litres [a year] to start was mentioned.’
At current retail prices in China, that’s around $7 billion in revenue EVERY YEAR.
But, if you invest in this firm, you won’t just benefit from capital gain. This company pays a good, steady dividend. At the moment it’s not a lot, but if that milk gets to China it could soon be massive.
Make a small investment now and part of that $7billion revenue could soon be coming to YOU in dividend cheques twice a year, every year.
Exactly how big is this opportunity?
Even with Chinese distributors already demanding as much milk as Australia can send, the trend has barely begun.
China’s milk consumption per person is only around half of Taiwan’s and a quarter South Korea’s, but that’s a massive increase from where they were even just five years ago. They’ve gone from being a country where dairy products were practically unknown to spending $36.6 billion a year on dairy products.
All signs suggest that this increase in dairy consumption is barely the beginning of a massive shift in Chinese eating habits.
There’s a global race to supply China’s booming market with premium, safe and quality milk products at high prices.
And I believe one company is perfectly placed to win this ‘Great Dairy Race’...
Soon this deal will be all over the papers, but by then you’ll have missed your chance
As you’ve probably guessed, the stock I’ve got my eye on in is a dairy producer.
It’s a small company based in rural Victoria.
But if they manage to sell fresh milk to China they’ll tap into an enormous market desperate to buy their product at seven times the Aussie retail price.
That could transform them from a small company into an investment that could help fund your whole retirement.
So can fresh milk really be flown from Avalon airport into China?
You bet.
There’s much more to this story. You can get the full picture in a brand new report I’ve written. The report also contains a full investor briefing on the stock, including the name of the company, its ticker symbol, entry price and profit projection.
I’ll show you how you can get your hands on a copy of my report in just a minute.
What you need to know right away is that this is an incredible opportunity to fund your retirement. Until that first shipment takes off in November – it’s an opportunity no one else sees.
And the best part is, even if the flight to China doesn’t work out, you should still see good profits from this firm.
Why? Because…
The $7 billion flight to China is just ONE of their projects…
The Company has also: •Signed deals to supply Coles, Mitsubishi and other big organisations with milk and cheese. This means they have a reliable source of profit.
•Received a $1.2 million dollar government grant to build a new cheese facility. So it should be more than able to deliver on all its contracts.
•A history of weathering financial difficulties. In 2012, despite market prices for dairy products falling 20-30%, the company only suffered a 1% drop in revenue.
In the end, these are just some of the factors that show this is an established company, with a quality product, that’s selling something people really want.
The company also pays a nice dividend. That’s a good steady earner that could shoot up if they can get their products to market in China.
Now you’ve got officials on both sides working for you
What you’re probably wondering is…
Will this little Aussie company be able to fly its milk over to China?
Can they get past Chinese customs?
It’s all very promising. Distributors are working on an arrangement with Chinese customs to get the approval time reduced.
With locals trying to influence the Chinese government, the chances of success are much greater.
There’s also a lot of support coming from the Australian government.
Politicians have spotted this as a great PR opportunity.
Imagine how good an Australian pollie would look if he clinched a Chinese trade deal for Australia’s dairy industry.
More importantly, what does this mean for investors?
You could be looking at a 125% gain or more by the end of this year
At this point I should offer you a word of caution.
This is a risky play. The deal is not yet done — and could go either way. If this firm already had the green light to supply its milk to China, the share price would be much higher than it is. The fact is, there’s still a fair bit to sort out. So any investment is a punt at this stage.
My view? I expect this firm’s share price to soar once any deals with China are announced. To understand why confirmation of a deal would send this stock sky high, just look at how much it rose on mere rumours of a deal.
The first time speculation of a China deal appeared in the press, the stock rose more than 60% in seven months.
The stock also jumped 125% on rumours of a takeover in 2010. There have been similar rumours lately.
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You’ll get more details in the full report, but both of these scenarios are possible this year.
But it’s the explosive growth in the company’s dividend that’s really interesting from a retirement-saver’s perspective.
If the company can grow revenue rapidly by selling at higher prices to China you could reap the benefits in cash payments immediately (and every six months for as long as you hold the stock).
Imagine getting paid to do nothing in retirement.
You could sit back and relax while your money goes to work for you!
Are you ready to take control of your retirement?
There’s a lot more to tell you about this company and their exciting plans to expand into the Chinese market.
I’d like to show you my full report on this exciting company, but in fairness to my paid subscribers I can’t just give you information they’ve paid for.
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What’s more you’ll get my full report on the little Aussie company about tap into a $7 billion opportunity by exporting their milk to China. All the details are in my briefing ‘How to Turn Avalon Airport’s $7 Billion Flight Delay into Your Retirement’s Wildcard Investment’.
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It works out to just 13¢ a day…for the kind of retirement investment advice and insights most people pay thousands a year for. For that you’ll learn all about the most exciting Asian growth opportunity in a decade.
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Sign up now and I’ll give you instant access to my report on the company set to sell milk to China so you can get straight into the action.
Right now Chinese demand for Aussie milk is roughly $7 billion – and it’s growing every year. Surely it’s worth a look at this opportunity?
To make sure you don’t get left behind once that plane takes off…CLICK HERE. Best Wishes,
Nick Hubble Editor The Money for Life Letter
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Calculating Your Future Returns: The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you've invested. While useful for detecting patterns the past is not a guide to future performance. Some figures contained in this report are forecasts and may not be a reliable indicator of future results. All advice is general advice and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.
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