Business Overview

Nutritional Choice Australia Pty Ltd (“NCA”) owns a milk powder mixing, packaging and wholesaling business with a range of products for sale in Australia and internationally.

NCA has Australian and Chinese (CNCA) operating licenses.

NCA produces various iterations of:

• Milk powder

• Infant formula

• Flavoured milk powder

• Adult nutritional powder

• Protein powder

• Whey powder

• Colustrum powder

Demand for these products is exceptionally high in China and within Chinese communities worldwide. In addition, new markets such as the middle-eastern countries are showing increasing demand for high grade milk powder products. The prices charged for Australian and New Zealand milk powder products in international markets are 2 – 3 times higher than can be achieved locally, making export significantly more attractive than production for domestic markets.

NCA has the capacity to produce 864 containers per annum (at 48 weeks x 6 days), each of 17,772 x 900g tins. NCA’s factory is highly automated and requires only supervisory and logistics staff to operate. NCA has low fixed costs of just under $2.8 million per annum (inclusive of premises and equipment rental payments and employment costs) and has a break even point of $10.4 million in gross sales (around 52 containers, depending on product mix).

All customers pay deposits prior to production commencing and pay the balance prior to despatch of goods.