A2M 1.63% $6.64 the a2 milk company limited

This is the big unknown, price to consumers and profit margin. I...

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    This is the big unknown, price to consumers and profit margin. I can tell you the cost of getting product from NZ to US either by air or sea is 3 times the cost of getting product to Asia (by air or sea) along with extremely limited space (on planes and boats) and the lead time by boat (as an example) is comfortably 6 weeks, if not longer. Then there's tariffs??? USA v Asia. Then there's domestic logistics in the US (handling, storage, distribution) and labour costs on arrival at destination. Again these costs are significantly less in Asia than the US. So..... from a FOB (free on board) price to retail sale price the costs incurred to finally have product on a shelf in US is far greater than getting it on a shelf in China or Hong Kong... So in order to maintain the same profit margin the retail price needs to be that much higher. Then after all that, will it sell at a much higher price point?
    Disappointing, yes as it would have given easy entry to the US but not devastating as greater profits are readily available in Asia. IMO.
 
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