ATM - A2 Milk Corporation Limited

[misterx]

http://www.fool.com.au/2017/06/16/wh...a-record-high/

sb9 you are in good company....Motley Fool now predicting SP to break $A 4.00

Getting there slowly. Matter of time now I think..

[sb9]

http://www.fool.com.au/2017/06/16/wh...a-record-high/

sb9 you are in good company....Motley Fool now predicting SP to break $A 4.00

Looks like its itching to claim that $4 dollar anytime soon....

Few posters on HC have mentioned that few AUS fund managers upgraded the price range to A$ 4.22+ mark which is about NZ $4.45....

[Yoda]

Can they get hold of enough A2 milk to actually cover the proposed growth ? There are only a certain amount of cows , after all right ? At what point does the proposed growth become hampered by the supply of actual milk ? and at what SP does that become over- priced . The PS is already looking at future growth , right.
Im not a farmer, so have no idea how long it takes to double your milking heard, but if the supply runs dry or stagnates, there will be a problem ! Better call the Vet and get some AI going on :-)

[Oliver Mander]

has just hit $4.00,...with all of 60 shares traded!!!

[Latama]

And there goes all the asks at $4! Someone just went gangbusters on them and took them all out.

[Leftfield]

Looks like its itching to claim that $4 dollar anytime soon....

Few posters on HC have mentioned that few AUS fund managers upgraded the price range to A$ 4.22+ mark which is about NZ $4.45....

Back in April post #5989 I saw potential up to $NZ 4.11 and that was before the latest upgrade, so all is looking great IMHO.

[kizame]

Can they get hold of enough A2 milk to actually cover the proposed growth ? There are only a certain amount of cows , after all right ? At what point does the proposed growth become hampered by the supply of actual milk ? and at what SP does that become over- priced . The PS is already looking at future growth , right.
Im not a farmer, so have no idea how long it takes to double your milking heard, but if the supply runs dry or stagnates, there will be a problem ! Better call the Vet and get some AI going on :-)

I don't know the ins and outs,but I would guess a lot of farmers in the area would be interested in converting to get a better price,so could change herds in advance whilst still supplying to Fonterra,then change to synlait with a divided herd,not sure how that works but someone else on here might be able to shed some light.

[BlackPeter]

Can they get hold of enough A2 milk to actually cover the proposed growth ? There are only a certain amount of cows , after all right ? At what point does the proposed growth become hampered by the supply of actual milk ? and at what SP does that become over- priced . The PS is already looking at future growth , right.
Im not a farmer, so have no idea how long it takes to double your milking heard, but if the supply runs dry or stagnates, there will be a problem ! Better call the Vet and get some AI going on :-)

Actually - I wondered about that as well. Did talk last week with the CFO of Synlait (was there on a factory tour with the NZSA) - and he said that they have at current much more A2 milk that they sell as A2 milk. They sell as much A2 as they can as A2 - and the rest just goes into the "regular milk" products. More demand for A2 would just increase their margin (given that they can sell if for a higher price ...).

He was a bit cagey when I asked him about the ratios between A2 / grass fed / regular ... but it certainly didn't sound that A2 supply would be an issue anytime soon.

[BlackPeter]

I don't know the ins and outs,but I would guess a lot of farmers in the area would be interested in converting to get a better price,so could change herds in advance whilst still supplying to Fonterra,then change to synlait with a divided herd,not sure how that works but someone else on here might be able to shed some light.

Well, yes - converting a herd from A1 to A2 does take time (think up to 10 years. depending where you start), however the good news is that Synlait has at this stage a waiting lists of farmers who would like to move from Fonterra to them (there are a number of benefits for them to supply Synlait instead of Fonterra - like additional bonus for speciality milk, a bonus for sustainable farming and no need to invest into the milk processor (frees up capital when coming from Fonterra).

As per my last post it sounds as well that Synlait have at current more A2 milk than they can sell A2 branded.

[JCM]

If you had those today, would have been $99,960 better off (on paper).

Not bad for a days work!

By my calculations you're off by an order of magnitude...

See Weed must be a happy man!

Actually - I wondered about that as well. Did talk last week with the CFO of Synlait (was there on a factory tour with the NZSA) - and he said that they have at current much more A2 milk that they sell as A2 milk. They sell as much A2 as they can as A2 - and the rest just goes into the "regular milk" products. More demand for A2 would just increase their margin (given that they can sell if for a higher price ...).

He was a bit cagey when I asked him about the ratios between A2 / grass fed / regular ... but it certainly didn't sound that A2 supply would be an issue anytime soon.

Thanks for that additional info. It would be great to get some figures behind how much growth they can support with current/forecast production of A2.