Originally Posted by
Left field
I think the current SP drop has been a bit of an over-reaction. Although China may try to increase its domestic milk supply, this will take time. In that time A2 has many options;
a.) A2 can keep increasing its current Chinese market share of 8% to offset any threats. 10% remains an achievable target.
b.) Use A2's capital light approach to form new partnerships with Chinese suppliers (risky and not my fav strategy)
c.) Expand A2 into other Asian markets (Korea, Singapore, Japan, Malaysia etc) to diversify away from reliance on the Chinese markets
d.) Speed up the planned IF launch into USA (A2 IF not yet launched in USA, but is planned.)
Let's hope the SP regains some composure as the week progresses.