has ATM been cleared to sell milk powder in China...seem to recall they were one that hasn,t reached registration yet
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has ATM been cleared to sell milk powder in China...seem to recall they were one that hasn,t reached registration yet
From an ongoing business perspective the pending strategy for entry into the US is more significant about here and a much bigger long term market too.
For nearly a year we waited for the working group to assess options, I went to Auckland for the AGM in November and heard that the working group were still assessing, but, it now seems that they do have a plan, we just await some form of deal to be closed and the announcement to be made.
From the February HY report: “The Company has determined to progress North America as its next growth initiative and has established a working group plan for this opportunity” – C J Cook, Chairman
My humble view is that a replication of the ATM owned processing plant in Australia would be a good model to clone on a grander larger scale for the US and Canada, but we could equally see a series of JV’s, or perhaps, with the North American market being so large with widely distributed incumbent dairy companies we could even see M&A options come into play also.
http://www.dairyreporter.com/Manufac...lk-brand-in-US
A capital raising, yes do I hope so, a nice hefty discounted rights issue to fund a new US construction oriented growth option would be my preference, whilst existing revenues streams continue to be used to expand the other growth markets. A rights issue would be a fantastic top up opportunity for shareholders about here.
Existing revenue streams are sustainably matched to and are funding the present 2016 growth targets and expansion toward them. It’s been refreshing IMHO to see a company like ATM pumping every skerrick of cash into growth rather than hoarding it or worse paying it out as dividends.
I suspect though that we may just see JV's announced for the US with joint capital funding, possibly like the UK Muller Wiseman JV, but, I wouldn't rule out a zero capital M&A deal if the board is ready and open to such a consideration at this early stage in ATM’s business plan.
http://aboutthea2milkcompany.com/wp-...eview-2012.pdf
Snapiti, below is a post from MAC posted last week. I think you will find he is fully aware that a capital raising may be needed for a big push into the US, while Australian sales and profits are funding push into UK & China.
In fact MAC is on record saying he would like to see this capital raising sooner rather than later, providing the company has a clear marketing strategy and goals. I agree with him and would also support that. After all this is a small fledgling company with aspirational goals and clear strategy to achieve them. Some of us like that.
No wonder the A1 competition in Australia are squawking, ATM success is hitting their bottom line and they cannot develop their own A2 products as the A2 Milk Company own the IP and the patents.
ATM don’t just have the first mover advantage when they enter a new market like the US, effectively the A2 Milk Company is the market.
So, when all those big US dairy companies like DFA or Kraft, even some of the multinationals too like Nestle look at Australia what they must see is ATM taking all but a 10% market share in an extraordinarily short period of time, and within a fresh milk market that has been shrinking for 10 years, and with a 50% price premium on across the counter sales.
The US and Australia are relatively similar markets, much more so than when compared to Europe. Both have large territorial dairy companies with predominantly A1 herds and thus similar uniform levels of BCM7 intolerance. Both fresh milk markets are shrinking and are under similar pressures.
When the big US companies see the A2 Milk Company heading their way, right about now, why would they all not want a piece of that A2 action. But, the only way they can get access to it, is to become the lucky joint venture partner, or, to take an ownership stake.
It’s probable that there is a heightened awareness in the US at present, not only just from all the media releases, but while Geoff and the team are presently talking to incumbents in regard to establishing herd conversions, milk processing capabilities, assigning distributors and working on forward retail agreements.
Who knows what those big US dairy companies may do, but I bet they like A2 ?
Doesn't relate to ATM directly but an interesting read;
http://www.stuff.co.nz/business/farm...-farming-model
ATM stronger today? Has the trend turned?
I'm in
Hoping that it is not a dead cat bounce:confused:. But topped up anyway.