Currently there are ads playing on radio and in print in NZ...

Currently there are ads playing on radio and in print in NZ asking farmers to become A2 suppliers due to "unprecedented demand". This indicates a couple of things - 1. They are clearly desperate for new milk supply due to demand and 2. They still have the capacity to ramp up the processing of more milk. The 2nd one I was concerned with - even though they can switch farmers quite quickly to supplying A2, it does not mean they will be able to process it. This indicates they do in fact have the spare capacity if required.

Both however are excellent drivers for the companies future prospects.

Once new supply comes online (and it will within a month or so as they pay a premium to dairy farmers above what normal milk does, normal milk prices being rather low at the moment), you can look at a new earnings upgrade. Likely around this time next month I would suspect...

Big growth prospects coming online now, I would suggest we are just seeing the start of a real growth curve. This is the advantage A2 has over Bellamy's - they can ramp up supply within weeks. To do so they DNA test each cow to check it is producing A2 only, separating those that do into separate herds. To become organically certified however is usually a multi year/bovine generational prospect...

Personally been a big believer in A2 (having drunk it for over a year now and been invested for almost 2 years).