A2M $3 Party, page-109

Yes, I think that’s a realistic view, a lot of posts on this forum though are not so much, it’s good to have some researched based balance.

I would not though say Akarola is no frills one bit, they have bought into an exceptional quality process in “synlait sure”, and customers in China will take a lot of confidence from that I have absolutely no doubt.

One just has to rummage through the website to see it’s potential as a mark of confidence.

http://synlaitsure.co.nz/

A2M, if you are listening, you could and should also sign up to this mark !

a2 platinum is differentiated by the a2 protein only and I suspect higher levels of lactoferrin, still looking into that, as lactoferrin levels may have increased in Akarola also.

So the question now is, what will FY17 revenues be for A2M formula ?

Hypothetically, if a price point drops by 50% in China, production and unit sales volumes would need to lift by 100% to maintain flat revenues.

Logistically and physically overheads may also lift a little. I’m doing some sensitivity analysis on this at present, as are all analysts probably, will post some findings at some point.

Aside, A2M do also have on the ground contracted distribution channels in China, they struggled initially with CSF but seem to have sorted that out.

https://www.nzx.com/companies/ATM/announcements/257936