I am not a believer in analysis recommendation. This is an...

I am not a believer in analysis recommendation. This is an outdated 75-page analysis without the recent effect such as MSSP, Low Dairy Price and Loss Milk Volume, but it sheds light on understanding MG business, including key brands, product category and its profit driver, which are what really matter to investors.

https://my1.morgans.com.au/r.cfm/37158D8A-55C3-47B1-8BD9-8F1BFDFDED04

In response to whether loss of milk is good for MG and exacerbates the need to switch to high-margin Dairy Product,
simple answer: brand is an economic moat.
Despite of the rise of global dairy price and possible associated cost for farmers and manufacturers to produce quality products, branded high-margin dairy product is what differentiates and makes MG, more competitive. If farmers or manufacturers only focus on cost-down, their long-term advantage over its counterpart in other less developed nation can be eroded, because our products will not longer be seen as premium and of great value.
Commodity industry is not something any business wants to be in.

In my opinion, manufacturing quality raw milk to be used in making of premium product might cost more, but brings more profit to the MG, as well as farmers by its profit-sharing mechanism.
Becoming a vertically integrated Brand product producer is the ultimate goal of MG.
Building and sustaining a powerful brand is difficult and does pay off. Even Fonterra still relies a large portion of its revenue through commodity dairy market.