Synlait Presentation, page-18

actually 85-90% of IF produced by Synlait is A2 IF. You are correct Synlait produce far more than just IF but it is the most profitable part of their business. The other two brands (Munchkin and New Hope) are very small at the moment. Munchkin has yet to get FDA approval for the US market which is their target market. New Hope has yet to get their CFDA approval for China which is their target market. Thus growth from those two in FY18 is going to be limited so it is pretty safe to assume the vast majority of the increase in IF production by Synlait will be for A2. Given the margins on IF the increase in NPAT will be huge - maybe greater than 100%. With regard to the A2 milk supply A2M have always had more milk via Synlait than they have needed for IF. The excess goes into adult milk powder and beyond that back into the a1 pool for sale as conventional product i.e not a2 branded product. Synlait have had more farmers wanting to supply them a2 milk than they needed and have turned them away in the past - I would be sure though that they have kept them in the loop ready to accept them as official A2M suppliers as and when needed. You can be sure if Synlait are going to double production of A2M IF in FY18 then they have the milk.