Closing price above $1.82 is crucial, page-719

Howdy Yeoda,

I think A2M increasing their supply is a certainty. They've done brilliantly so far with the manufacturing resources that they're able to make use of; but I think we're at the point where the existing supply arrangements are pretty much at their limit.

So- where to from here? The Chinese market is huge; A2M are selling every tin of formula that they can pump out. It's a pretty safe bet that any increase in production will sell instantly. We need more supply- but where to get it? Off the top of my head, I can see three options:

- Synlait can increase their production, either by expanding their exisiting facilities at Dunsandel, or by building a completely new facility. A2M would take up a majority of either option.

-A2M can secure another infant formula manufacturer to supplement their capacity in addition to Synlait.

-A2M can "go it alone" and build their own, in-house IF processing facility.

I'll admit that I have no idea about which way A2M will go- perhaps a combination of the above, or even something that I've not thought of. I suspect the first option will be the most favourable to both A2M and Synlait- and in fact I believe Synlait have an announcement coming soon regarding a possible expansion of their manufacturing capabilities (can another poster shed some light on this?).

Either way, securing additional supply is a high priority for A2M- the market is there, no doubt. It's a hugely popular product but supply has to keep up with the skyrocketing demand.