AHF 8.89% 4.1¢ australian dairy nutritionals limited

Good question and the answer is that it doesn't and it has no...

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    Good question and the answer is that it doesn't and it has no direct impact on AHF at all.

    However the FGMP is a good indicator for a number of other reasons and one specific to AHF is that it can be used as a benchmark for the cost of running the AHF farms and I would like to see the industry mean FGMP, or a derivative of, used as one of the Key Performance Indicators for the farms.

    The other component of that is that if AHF does buy contract milk from ACM or on the open market from one of the milk traders/brokers then we will pay a premium to the FGMP to get more raw milk into the processing plant to push more finished product out to drive revenue.

    That is the conundrum with owning farms versus buying milk from others and my view is the horizontal integration of farms, done well, beats the buying of others milk every time.
 
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