A2M the a2 milk company limited

Well, yes, we are somewhat on the same page. However, I see the...

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    Well, yes, we are somewhat on the same page. However, I see the a2 intentions a bit different. I see it as a2 wants flexibility in production and not cut it's relation with Synlait. Most likely to split production of both EL and CL between two companies with some guaranteed minimum volumes for Synlait. It will give greater flexibility. Plus, I doubt MVM will be able to cover a2 needs for quite some time if ever. So, it's better to have more options. But that will depend on how dispute ends.
    a2 does not have to wait until 2027 to produce CL or EL or anything else at MVM. They can do it as soon as they able to (from what I've heard last time packing facility at MVM is somewhat 2 year away). What they can't do is sell it in ANZ and China while exclusive agreement is in place and SAMR for CL is obtained which they can apply for at any time when are ready.
    Regardless of anything I'm very certain a2 would want Synlait to renew its SAMR past September 2027 and beyond. However, if agreement is terminated and not renewed in some other form, a2 would need much greater effort and more concessions to convince Synlait to reapply for SAMR. Now, it's a bit a conspiracy theory on my behalf but if a2 announce contract termination ant the end of 2024 or beginning 2025 it means Synlait would have to supply IF until end of 2027 beginning 2028 under current agreement which means they would have to apply for SAMR renewal past September 2027 otherwise they wouldn't be able to supply CL past that date till end of agreement. But that just a theory.
    a2 will not let Synlait to continue with exclusivity over CL for any longer than needed, after all CL is roughly 2/3 of a2's income now.
    Anyway, these are just my thoughts. Nobody need to agree or disagree with them.
 
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