Australian Dairy Farms Group is a vertically integrated business – AHF is a vertically integrated dairy producer that owns and operates four dairies on six properties totalling 1,330 HA (3,436 Acres).  The dairy farms carry approximately 3196 livestock, which includes 2,130 Milkers producing approximately 15,000,000 litres annually.

The Camperdown Dairy Company (CDC) processing plant including packaging facilities produces and distributes milk, butter and yoghurt to Victorian Woolworths, Coles and IGA Supermarkets with the range of products home delivered across Australia.

To improve the Group’s profit and maximise securityholder wealth, the following developments are intended for implementation in the near future:

On farm productivity - improve existing production and livestock intensification, drive cost efficiencies with scale and deliver earnings to securityholders.

Scale - use scale to drive both revenue, cost synergies, and achieve critical mass.

Innovative development – improve farm productivity and risk management by implementing considered drainage systems and farm combinations, targeted irrigation and water retention programs.  In considering carefully the opportunities and viability for conversion of one or more farms to organic production and certification to take advantage of high milk pricing and the growing and unsatisfied demand for organic milk and products in Australia and internationally.

Grow brand value – investment in brand value and brand reach.

New products and product innovation – this will include building on the opportunities vertical integration provides; and

Strategic relationships - Continuing to on build strategic relationships, which have potential to add significant new business and products to the group.

These developments, together with the current strategy of continuous improvement and adherence to quality control are expected to assist in the achievement of the Group’s long-term goals and development.  The key risks of these strategies relate to weather factors, the changing business environment within the dairy industry and business risks in general.