Macquarie has $2.70 valuation & price target, page-2

• Potential El Nino impacts? We have assumed a 2.4% increase in milk

intake in Australia for FY16, and the latest Dairy Australia data shows Aust
milk production up 5.4% in Jul and 3.7% in Aug, so the market so far is
running ahead of our assumption, hence a buffer exists if production drops
due to weather. Strong milk prices over the last two years mean that industry
is well-placed to manage a dry period along with herd management.

Tell em their dreaming mate strong milk prices over the last 2 years ? must of missed that while i was holidaying in the south of france