A2M 1.56% $5.86 the a2 milk company limited

Threats of China

  1. 1,525 Posts.
    lightbulb Created with Sketch. 17
    Camperdown China milk export suspended, two other firms probed


    Fresh milk exports from Australia to China require licensing in both countries.
    The Agriculture Department is investigating three exporters of liquid milk accused by China’s quarantine administration of exporting nine batches of “non-compliant” products over the past year.
    One of the three, Camperdown Dairy based in southwestern Victoria, had been suspended by the department from exporting “until action is undertaken to resolve these milk quality issues”, a department spokesman said.
    “It is important to note that the non-compliance related to milk quality issues and not food safety,’’ he said.
    The other two companies are still being allowed to export pasteurised milk.
    Any concerns about food safety would represent a major setback for the fresh milk exports to China.
    While the market is relatively small, at $US60 million a year, it has seen fast-paced growth in recent years.
    Concerns over safety could also have knock-on effects for the bigger milk powder market.
    Camperdown was bought by Australian Dairy Farms Group for $11 million — with settlement completed in April — from Aussie Farmers Direct.
    Australian Dairy Farms issued a statement yesterday to the Australian Securities Exchange, saying that exports represented a small proportion of total Camperdown sales, and that “every batch of product produced for export is extensively tested by an independent external laboratory, with the test results supplied to, checked, and recorded by management”.
    “At no time has any test result showed any harmful bacteria,” the company said.
    China milk sales were “not material to the current financial performance and represent only about 2 per cent of total sales”, it said.
    Fresh milk exports from Australia to China require licensing in both countries.
    The official website of the Certificate and Accreditation Administration of China said it summoned an Australian embassy official a week ago to notify its decision to suspend the Chinese licence for Camperdown to sell fresh milk there.
    China’s Administration of Quality Supervision, Inspection and Quarantine says it is strengthening supervision of imported milk generally, and is asking 41 Australian milk companies to provide further technical documentation to prove their products meet Chinese standards.
    The Australian Agriculture Department is working with the Chinese authorities to provide this information.
    The department’s spokesman said that in the case of Camperdown, “if the department is satisfied non-compliances have been addressed, a recommendation will be made to China for the manufacturer to resume exports of pasteurised milk”.
    The China Dairy Association said China imported 260,000 tonnes of liquid milk from January to May this year, an 87 per cent increase over the same period last year.
    Chinese Agriculture Minister Han Changfu said at a dairy industry summit in Shijiangzhuang, Hebei province, a week ago:
    “We have no reason to give up our national dairy industry, no reason to give such a big market to others.”
    [END]
    Last edited by Alterego1168: 03/09/16
 
watchlist Created with Sketch. Add A2M (ASX) to my watchlist
(20min delay)
Last
$5.86
Change
0.090(1.56%)
Mkt cap ! $4.236B
Open High Low Value Volume
$5.80 $5.90 $5.80 $6.580M 1.123M

Buyers (Bids)

No. Vol. Price($)
1 800 $5.85
 

Sellers (Offers)

Price($) Vol. No.
$5.88 12383 4
View Market Depth
Last trade - 16.10pm 26/08/2024 (20 minute delay) ?
A2M (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.