Ok, so let's examine your comments as fact because they are;
Fact - dairy farmers, cattle farmers, vegetable farmers and grain producers having been gowing broke for years.
Fact - farm gate prices, beef prices, grain prices ETC have been variable for years.
Fact - small producers have struggled off the land and been forced off by financiers for years.
Fact - common drought conditions as seen across central Victoria and NSW currently effect prices and farmers confidence.
Just as other industries have also suffered; to name a few - miners and boom mining towns gone, small family operated supermarkets gobbled up by majors, families that have lost jobs due to reclining economies and been forced to sell homes, the car manufacturing industry in Australia, super funds obliterated by the GFC and so on and so on and so on.
All of this breeds OPPORTUNITY ! Accumulation into high performing assets, the more the more. As economic conditions decline, let's say in this instance the dairy sector - the small guys always get pushed out... The small producer can't survive. The big guys can.....Not uncommon no matter what industry it is. As you need more to make more....
So, now let's examine some other facts relative to AYB.
- They have the opportunity to accumulate in weakening dairy sector conditions.
- Strong genetically superior herd and volume number of cattle across 5 individual farms.
- High milk producing cattle
- Insemination program in house to increase herd numbers therefore increasing production
- high quality onsite infrastructure and water rights
- a very important factor is retention of labour onsite already familiar with operations
And so on and so on and so on.
Accumulation, monopoly ETC....the big guys win.
AYB, diversifying ..... can see an opportunity.
AYB have the opportunity to succeed ONLY IF they complete the deals.....
Dairy will never not be a required staple in a humans life - unless of course as a race, we all of a sudden convert to the PALEO diet !
The dairy industry will continue to provide opportunities for those that can take advantage of them. Those opportunities are available to AYB - IF they can transact !
The more, the more.
Expand
