The broker notes that the dairy farming cycle is in its second of three right-side phases — a consolidation/accumulation period — and advises buying on dips. A key near-term catalyst is the expected 55% tariff on Brazilian beef imports from October 1, which should raise domestic cull cow prices and biological asset fair values.
The broker remains bullish on the dairy farming cycle, recommending accumulation on weakness, with Youran Dairy and Modern Dairy as top picks.
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