Personally I’m on the fence about whether to diversify or not....

Personally I’m on the fence about whether to diversify or not. To me it’s a balance. JAT has never simply been about dairy, but exporting. People just come in labelling JAT as a diary company and putting there assumptions to what the company sells.

The positives of diversifying is that we sell more variety of products and if dairy demand drops, JAT can still remain profitable through its other ventures(avoiding the too many eggs in the same basket theory). Trends change all the time and diary might be the hot commodity right now but that could very well change and JAT atleast has the ability to change its products to meet demand.

The negatives of diversifying are that we spread thin our resources and increase our risk of not making any standout product. Ironically I’m going to use chinese restaurants as a great example. Your typical Chinese restaurants has a lot of options to pick from when you go to order. This can be overwhelming and can actually make it harder for customers to decide. Chances are (myself include) the customer would look through the menu and pick the usual few dishes. Instead spending time and resources perfecting the few dishes and making them amazing, Chinese restaurants flood the menu with a lot of dishes that make the menu difficult and annoying to read. The restaurants with niches seem to have less to worry about as long as their “main” items are popular and focus and making those standouts amazing or better. They avoid having a lot of options and stick to what they do best.

Yes I know this is generalising, but it does paint a fair picture on the question of whether to specialise in a few items or have a large variety or decent/mediocrity items. I feel JAT is probably dipping into too much too soon. They should focus on the businesses they already have and make those ventures quality as oppose to having too many mediocre ventures. All IMO.