Why is there a baby formula shortage?

Two things:  A2M went too high too fast.  It's called a bubble.  Today it looks like another 5 or 6% more down, which is less than some in the same space (AHF for instance) so I am remaining positive. although it wouldn't surprise me to see a drift down to 1.50-1.60 before the next results announcement.

Secondly, the baby formula shortage, specifically in China.  While there may be more supply coming on as investment flows into dairy, I read an interesting article (Nov SBS website) "Baby formula shortage: Why do Chinese women shun breastfeeding?"

Chinese mothers have one of the shortest duration of breastfeeding in the world, for reasons that you can read about in the article if you want.  These are long term issues, social issues.  It's not going to change anytime soon.  It's not only about the rising middle class wealth and the distrust of Chinese baby formula, it's about a probable baby boom in China with the dropping of the one child policy combined with the falling off of breastfeeding.
http://www.sbs.com.au/news/article/...rtage-why-do-chinese-women-shun-breastfeeding

It gives me faith in the long term profitability of companies such as A2M.  Their main problem will be adding enough production to keep up with the demand.

Happy New Year everyone.