Why Australian Dairy Farms Group Share Price Jumped Higher Today

What happened to the Australian Dairy Farms Group Ltd share price?

At the time of writing, shares of Australian Dairy Farms Group Ltd [ASX:AHF] are up by 25.64%, to 24.5 cents, in today’s trading.

Why did Australian Dairy Farms Group Ltd share price increase?

Australian Dairy Farms Group Ltd signed a significant new contract with an international food company. Camperdown Dairy Company — a wholly-owned subsidiary of Australian Dairy Farms Group Ltd — is expected to generate $30 million dollars’ worth of sales in the first four years of production from the agreement.

Free Report: Discover four red hot ASX profit plays for 2018. Read Now.

What now for Australian Dairy Farms Group Ltd?

The acquisition provides significant share price upside potential. The company will provide premium, specialised, fresh dairy products that have achieved high levels of success in other international markets over many years. The undisclosed products — new to the Australian market — are expected to launch during July or August through a major Australian supermarket chain.

There’s share price potential from the naming of the potential customer in the months ahead. Non-disclosure agreements are in place until the products have been launched. The identity of the customer isn’t considered, by the directors of the company, to be sensitive to the share price. However, assuming a Chinese customer, the market could react positively given the growth potential.

Jason Stevenson,
Resources Analyst, Money Morning

PS: Free Report: Three ‘gold-mine’ investments set to reignite the ASX in 2018. Download now.


Money Morning is Australia’s most outspoken financial news service. Your Money Morning editorial team are not afraid to tell it like it is. From calling out politicians to taking on the housing industry, our aim is to cut through the hype and BS to help you make sense of the stories that make a difference to your wealth. Whether you agree with us or not, you’ll find our common-sense, thought provoking arguments well worth a read. Money Morning Australia is published by Port Phillip Publishing, an independent financial publisher based in Melbourne, Australia. As an Australian financial services license holder we are subject to the regulations and laws of Corporations Act and Financial Services Act.


Leave a Reply

Your email address will not be published. Required fields are marked *

Money Morning Australia