why bubs is diversifying

all the dairy companies and infant formula companies are worried they will be next on the hit list.
1. $1 billion barley trade stopped overnight when China put tariffs on Australia barley. no other country can buy that much. barley farmers are losing money. China increased $1 billion imports of barley from us.
2. China suspended beef abattoirs based on labelling and technicality issues. beef exports to China are stopped worth billions. at least they have some Middle East markets to sell but again hundreds of million of losses. China is buying from Brazil and us.
3. China announced two wine investigations. $1.4 billion wine export to China impacted. China is likely to put big tariffs on wine if they did what they did for barley. wine trade gone. plenty of countries like France is wiling to supply.
4. what's next. they are looking at list of top exports to China. iron ore will be fine as Australia and Brazil are only suppliers and Brazil can't export due to coronavirus.
5. dairy and infant formula companies that export to China are so worried that China is going to target them next. Europe is ready to supply if they target Australian dairy.

what do you think will happen to Australian dairy and infant formula is China targets them next and the trade stops. this also means ecommerce channels where they will be either suspended or huge tariffs put on.

companies that export goods to China are all been told to come up with diversification strategy. bubs is diversifying to vitamins, looking at other markets, having Jennifer Hawkins so aussies are buying, manufacturing in China. the problem is all these are cash burn and hence CR and possibly more CR in future to come imo. you have to give management credit for trying rather than do nothing and wait for it to be next on hit list and then do something about it. the unknown is whether their new strategy will work or not.

rather than bagging out management, let's hope their strategy works. don't be surprised dairy is next on target list to be taken action.