The perversity is the average Chinese punter doesn't trust the product sold locally . ( history of melamine ) so happy to pay more than double for one with a receipt from woolies in Aussie , with the label all in English .
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Wow what a ride.Tried to get some at 1.41, but by time I put order in it was back to 1.48-1.50 now it's on 1.61. This is better than Rainbows end.Ended up getting some at 1.48 to 1.50.:mellow:
Of course if these guys sign a deal with a2 in some shape or form, it may negate the risk from the grey channel all together.
http://www.smh.com.au/business/chine...02-gok0qy.html
Unless Synlait agree to A2 being one of the three brands it produces? It reads to me that it's more aimed at preventing manufacturers creating multiple brands to flood the market. A2 only appears to have the one brand so I would have thought it would be OK, certainly their comments publicly thus far have indicated that they're across this change and are well prepared.
They do. Their appointed agent is CHINA STATE FARM HOLDING SHANGHAI CO.
IMHO - if the grey channel freezes then the volume currently going to Ozzie and HKG (ultimately to china) will go direct. Also I can't see the product being any more expensive to the consumer if sent direct. Certainly the cost to getting it to market is no more than the cost to Ozzie or HKG.
The number of brands relates to the product manufacturer, not the brand owner.
So Synlait can only send 3 brands into China under current wording
Synlait can choose to have A2 Platinum as one of their 3 brands, but that only leaves Synlait 2 other brands they can send into China
Synlait's own mainstream brand in China is Pure Canterbury, leaving them 1 other brand
Akarola is a direct marketed Synlait brand in China, leaving no other brands available for them
These are just the brands I know about, there may be others
Now think about Synlait ownership. Bright Dairy, a large Chinese dairy company is a major shareholder. Shanghai Pengxin is the owner of Synlait Farms. What if either of these companies want a formula brand for China made at THEIR Synlait plant in NZ?
And then consider that Synlait has just spent over $100M on expansion to become a major third party formula manufacturer. What happens if they win the business of a major multi-national who wants to send product into China?
Finally consider what other NZ formula manufacturers are in the A2 milk catchment region AND have spare IF capacity AND have China manufacturing approval AND have unused brand entry
Sounds like a big risk to me