The 2nd plant in Auckland is a canning and blending facility....

The 2nd plant in Auckland is a canning and blending facility. The base powder will still come from their original Dunsandel plant in South Canterbury. The 2nd plant removes the previous restriction on production i.e putting the stuff into cans. Plus they have upticked the production of base material at Dunsandel as well. So no more restriction on supply. Plus Synlait have flagged a 3rd site will be announced in a few months.

Correct A2M do limit production on purpose as the exact demand is not known and ideally you want to produce slightly less than full demand. Apparently distributors order way more than they need knowing they will get less than their full order fulfilled. So very hard to know what full demand currently looks like and hence the "conservative" production volumes. That said the order volumes from A2M to Synlait increase consistently. The CFDA will be now provide A2M with more clarity and certainty around the mix of China label and English label production. Trust me the A2M management scrutinise this stuff daily!