ASX announcement:"
The CBDG JV arrangement is a transformational transaction for WHA, as it provides WHA with access to a vertically integrated organic nutritional dairy product supply chain - with organic sourcing from ODFA farmers, processing in the CBDG drying facility and production by B&P and end product supply to the WHA distribution channels. ODFA has in excess of 75% control of the fresh organic milk in Australia and this provides WHA with what it believes has the potential to be a unique position in the growing market for organic nutritional dairy powder.
WHA believes with the commissioning in due course of the CBDG spray drying facility that WHA will have a distinct advantage in retail marketing in having a truly Australian sourced organic product at a very cost competitive advantage without sacrificing margins."
WHA Price at posting:
$1.42 Sentiment: Buy Disclosure: Held