Why was Golden Koala Infant Formula opportunity missed by AHF?, page-37

AHF has been snookered somewhat in the "organic space" by ODFC entering into the fresh arrangement with WHA as they have around 50% of that market (mainly Victoria) and LON has secured 20% (mainly South Australia) with the acquisition of Paris Creek. This would seemingly leave AHF to be left in the wash from these two as they power ahead and leave AHF looking down a long path of catch-up fraught with delays, risks, missed opportunities and long capital return delays.

However there is an opening for them if they (a) knew what it was, and (b) knew how to capture and develop it and it would most certainly give AHF a kick up the road, again - BEGA.

[EXTRACT]
Bega Cheese chief executive Paul van Heerwaarden said the deal meant Australian-produced organic infant formulas would no longer need imported organic milk powder from Europe over time.
Mr van Heerwaarden said Bega Cheese would produce the infant formula under the brand of one of its customers — believed to be Bellamy’s Organic.

“The big story here is about ingredient import replacement,” he said.

“There is a lot of organic skim milk powder and whole milk powder that comes out of Europe into Australia for use in organic infant formula.”

Mr van Heerwaarden said he expected the organic dairy sector to grow over time, with greater milk production from dairy farms.

“Once the industry gets to a certain scale, it will support a more competitive offering and allow that part of the market (organic dairy) to grow,” he said.

“There certainly is demand for it, both domestically and for export.”

Organic Dairy Farmers of Australia did not respond to questions from The Weekly Times.

By: PETER HEMPHILL
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