A2M 0.44% $6.80 the a2 milk company limited

A2M $3 Party, page-306

  1. 178 Posts.
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    I'd imagine that along with the half yearly results, they will release a further updated forecast for the next quarter/full year, further boosting SP if positive of course.

    On a VERY LONG side note:
    We all know A2M Infant Formula (IF) is in extreme high demand and out of stock and constant worries have been expressed in relation to this.

    Let me attempt to educate some as briefly as i can, Synlait (the sole manufacturer if A2M IF located in the Canterbury region of New Zealand) have increased their capacity to produce their IF by 50%, by adding a 3rd state of the art spray dryer to their manufacturing plant late September 2015 . "The addition of our third large scale spray dryer, D3, increases our annual production capacity from 90,000 MT to 140,000 MT. "

    Synlait Milk Limited Annual Report 2015 (Released September 2015) - http://www.synlait.com/site/uploads/2015/10/Synlait-Milk-Limited-Annual-Report-2015.pdf
    "We now have the customers, people, manufacturing capability and milk suppliers to deliver a significant increase in our overall volumes, particularly the volume of finished infant formula. Our total sales volume is expected to increase from 97,803 MT in FY15 to 122,500 MT in FY16, with further growth in total volumes in FY17." (3 months of the year had passed prior to the 3rd spray dryer was opened)

    Now, I understand they do not only manufacture A2M IF, and produce competitors and their own inferior IF, but you can see they are heavily pushing A2M.

    Don't believe me?
    Jump on their website http://www.synlait.com/ and you'll see (on the very first page) that they are really pushing for their local farmers to convert to A2 milk ONLY cows as it rewards farmers a premium price for their milk when no extra work is required (other than the initial testing of milk and their beta-casein value and sorting the A2 milk only cows). I'm no clairvoyant but it doesn't take a genius to figure out the more and more farmers will jump on the band wagon thus increasing milk to turn in to IF.

    Synlait Milk Limited Annual Report 2015 (Released September 2015) - http://www.synlait.com/site/uploads/2015/10/Synlait-Milk-Limited-Annual-Report-2015.pdf
    "In response to their (A2M) growth we will have more than 30 suppliers providing milk for The a2 Milk Company™ in FY16, up from 17 in FY15, with further growth expected in FY17. Our A2 suppliers have identified and separated cows that express the A2 protein into A2 herds. This ensures milk used to manufacture products for The a2 Milk Company™ only contains the A2 protein, which is similar to the protein found in human breast milk."


    Simply go through their (Synlait's) latest yearly report/ results to see the headway they've been making signing up new farmers, developing the equipment, staff and resources to manufacture and increasing their A2M IF production.

    With the AUD dropping against the USD and EUR it makes A2M even more appealing against other international suppliers.

    I only see positives.

    Do you own research though
 
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