True, but most of SML's profit growth is coming from IF sales to...

True, but most of SML's profit growth is coming from IF sales to A2 and it gives more detail to form a forecast on SM1's revenue reported a month later.

I agree scalability does make A2 more attractive, but SM1 hold the approval license and even if something happened to A2 other companies, think bellamy's even nestle possibly ect, would kill to have SM1 supplying them.

I really like how SM1 are trying to diversify with the purchase of Talbot cheese and hopefully will build on their fresh milk with the contract they signed with foodstuffs south island. They also see a market to sell fresh cream and might develop their own distribution channels for niche products.

They are working with other IF sellers on a small scale but also focused on different markets to A2 which in time should hopefully spread revenue and reduce reliance on A2.

And to think they are going to have a doubling of capacity by the end of this year and if forecasts are correct there won't be much spare, except possibly some on their fresh milk facility.