Media Updates, page-2012

Don't agree with your general tone, but couldn't agree with you more on this. We should only hold as much Synlait shares as we need to ensure steady long term supply. I think a new factory/canning facility may not be a bad use of money provided it is immediately profitable. Currently we only get interest on the hundreds of millions in the bank but a canning facility in Australia might save us more than that in cost of production savings. Additionally, having it on our name would mean we are not relying on a third party e.g. Synlait as much. I agree getting someone else to do all the production for you is great because it keeps you lean and provides high returns on capital but the flip side is that there will never the same feeling of security. Imagine, a factory branded The A2 Milk Company, where The A2 Milk Company buys directly buys milk from farmers. It will bring about far greater security in our supply chain... we would not be relying on anyone (except the farmers but if we pay them a fair price, there is no reason they won't come to us). In my opinion that beats share buy backs. I also think the market would react more positively to the purchase of a new canning facility in Australia (for exports to South East Asia and Middle East) as opposed to share buy backs.