Why would subsidisation in itself affect margins? Just because the government is paying for half the price of a tin doesn't mean the price is any lower- right?
The highest margin segment of the IF business is ANZ. China label sales have quite a lot of costs eating into margins - higher ingredient costs for Lactoferrin, higher shipping costs into China, extra packaging costs for tamper proof lids - not all of these costs are applicable for English label.
So (hypothetically) selling English label A2 Platinum in USA would probably be higher margin than China label in China, but lower than English label sales in ANZ. Somewhere in between I reckon.
Why would subsidisation in itself affect margins? Just because...
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