In general I agree and unless something substantial comes out...

In general I agree and unless something substantial comes out from both the Senate and the ACCC inquiry and is introduced through legislative changes or changing of the industry operating framework the milk production communities will fade into irrelevancy and become localised boutique segments of what once was a great and potential a powerful agri-sector economic contributer. You know as well as many as others, if not more so, what has happened to MGC over the last 2 odd years and the collateral damage that has been caused along the way as well as the relationship between MGC and Fonterra Australia for FGMP setting and how the other processors tag along behind as it is very convenient. We both know the complexities around raw milk pricing and milk production systems and the sheer forces applied to farmers to adopt unproductive and unprofitable farm practices to support their milk buyers, often to their own detriment. NZ went one way with dairy and AU went the other...and the resulting difference is astounding irrespective of farm sizes or conditions, weather, water, breeds or farm practices.

However for AHF their business model removes them from a large part of this risk and also removes them from the large part of the associated dependencies as it is not solely dependent on the external parties who need to control the milk pool for their own purposes. It relates to both farm ownership and milk processing for market consumption. It is not a new model, nor is it a fancy model but it is a viable one and for now AHF is the only ASX (or even NZX as far as I know) listed dairy entity that is pursuing that approach with a single focus, albeit at a pace that would sorely test the patience of a snail in a hurry. And AU and NZ comprise the majority of dairy production in the southern hemisphere, contestable only possibly by India but it has greater challenges to surmount before it could even start to compete.

The AHF model if refined correctly, tuned from its raw vertical integration concept and with good stewardship is also replicable not only in other regions but also in other similar sectors where on-farm management is 24x7 and the unprocessed product is highly perishable.

Don't expect AHF to ever replace MGC but aspirations to a BGA sized company is well within their reach within a medium term horizon (e.g. say less than 5 years) if it is able to cast off its current shackles.