Ann: AHF to produce Organic Infant Formula with Australian Milk, page-109

I don't see any of those strategies which need to be executed as high risk, except for the branding/marketing of the IF. But if they can execute a full vertically integrated Australian sourced organic IF product, they will have an advantage over Bellamys (who source some of their WMP from offshore). This may provide some marketing advantage.

Based on how long SML have taken to build plants, we are looking at 18-24 months. If the facilities are ready before the organic farms, they can source the organic WMP from offshore for a year or so.

I think there will be many Chinese partners lining up for a JV for an Australian organic IF play at this MC. The milk commodity market is a mug's game and the reason why I never invested in AHF before today. But they have certainly moved in the right direction and we will wait to see if management have learnt from their mistakes. Unfortunately, sometimes in investing, the early investors fund the learning curve of inexperienced management. Now that the pathways in the IF market in Australia/China has been more clearly defined by regulators and other IF businesses, the management don't need as much skill to navigate this space.