…When the Stringers decided to move the PBP lactoferrin...

…When the Stringers decided to move the PBP lactoferrin operation from Malanda, Qld to Jervois, SA they would have carefully considered the source - and security - of whey supply.

Indeed, the size and product mix of the UDP operation in Jervois may well have been a critical factor in PBP investing $20m in Jervois.

The Stringers would have been aware that Tony Esposito was considering selling the South Melbourne-based UDP operation.

It would have made sense for them to seek assurance re security of whey supplies. Contractual assurance.

I would expect UDP's new owner, William Hui, to acknowledge PBP as a key, long term client.

Based in South Melbourne, UDP has three plants - at Jervois and Murray Bridge in SA and at Poowong, Victoria.

Hong Kong-based William Hui was Introduced to UDP by David Chen, co-founder of Huashan Capital.

He outlaid $70m for the purchase and is now planning to invest $20m in expanding production.

True, Hui acknowledges the size of the multi-billion infant formal market in China. So, presumably does PBP.

That's why Hui wants to diversify into milk powder.

Will he do so from an existing plant? Or a new one, perhaps in NSW?

First, he needs to secure milk supplies. He may even bankroll dairy farmers.

Hui values his reputation. Would he want to spoil this by burning strategic customers such a Probiotec?

I sense the Stringers and Hui may well consider a long term strategic collaboration, even, perhaps a formal alliance.