Original plan of purchasing Dairy Farms had excellent prospects. To be able to collectively supply large volumes to a Processor?manufacturer puts you in a position of strength tocommand a premium for your milk production.
The wheels started to squeak for AHF upon the introduction of CDC in early 2016 for $11 million, thus placing a massive drain on the balance sheet , this has affected the SP and shareholder value.
Shareholders of AHF have definitely not benefited from this fiasco and management decision. Blind Freddy would realize that such a plan requires a 100 million litres production before such dreams are feasible. Only big winner of this has been AFD.
Powder and Infant Formula are so over produced world wide but there is a huge gap in the Chinese market for better quality cheeses demand is high supply is short. There are many Private Companies who have tapped into this market and doing extremely well.
AHF Price at posting:
12.0¢ Sentiment: None Disclosure: Not Held
