So easy to throw a bit of literature out there, yes you are correct about the super herds but I will leave it up to Keith to explain to folks here the hurdles that Fonterra face in doing what you suggest. A rapid expansion as you imply is an all or nothing scenario and would have implications on farm gate prices, no premium will be paid once A2 milk supply becomes abundant. Fonterra has lost enough face and upset enough farmers and I am sure it does not wish to continue its poor management.
As for FNP milk pool what you refer to is only for contracted farms by A2m and only applies until the completion of the current contract which expires in 2020, it was never mentioned about breaking these contracts, also FNP only owns a 10% direct interest in this milk pool. FNP is actually developing its own herds not utilising A2m testing in Southern NSW and Victoria.
As for claim about Synlait only having only 130 in total the simple reason for that is that Synlait at the moment don't need to increase the number for their production needs besides for the new plant being built, as Keith says:
Someone else from Fonterra, with responsibility for stemming the leakage of Fonterra’s farmer suppliers to other companies back in New Zealand, will have said, ‘we need to provide an A2 option to our farmers or else more farmers will transfer their supply away from Fonterra’.
As for the common misbelief that A2 holds a binding patent over cheap A2 herd testing, two of the patents have expired and one is current to 2023 which involves hair testing. As a little hint the testing method is in the following page and shows the cost. www.crv4all.co.nz/wp-content/uploads/2018/03/A2-Testing-FAQ-flyer.pdf
Anyway been fun don't get to narky it is unbecoming I am just a poor silly farmer who is wrong often, as it is commonly said he who proclaims to know everything is the greatest fool. After 60 plus a few years I believe it to be true I still learn everyday.
Time to move onto something more interesting.
A2M Price at posting:
$10.50 Sentiment: Hold Disclosure: Held
(20min delay)