I don’t reckon there's a snowballs of a new plant build,...

I don’t reckon there's a snowballs of a new plant build, commissioning in three year’s time is too risky and A2M know that, no one inc A2M knows what the market will be like that far out, although the market may still be expanding, it's probable that supply will have outstripped demand by then, just look at the amount of new build presently under construction.

There is also still a heck of a lot of head room at the SML plant for growth right through 2016 into 2017 on D3, beyond that it is likely SML will arbitrage infant formula production over WMP production as the margins for them are so much higher, esp for value added products like a2 and 'grass fed'.

In my opinion the best thing that A2M can do with the cash pile coming at HY16 and FY16 is to establish a second contract processor, not in NZ or Australia, but in the US.

The US market is ripe for a2 infant formula which I reckon will take off much faster than the fresh milk market they have just opened.

That marketing message “a2 being the closest thing to human milk” may well go down very well in the country which has the highest spend per capita on health, and by far the highest per capita discretionary spend on wellness in the world.