ATM - A2 Milk Corporation Limited

[Balance]

Asian moms these days are not like what our moms used to be lol

Yup - they do not have access to the maternity leave provisions like in Western countries and to get ahead, both partners have to work.

It's a bugger, isn't it?

Much easier to be in a place like NZ where some on social welfare can produce kids by the dozens as a lifestyle choice and have the state pay for that choice. All the time in the world to feed the wretched kids 'mother's milk' - and guess what, they don't.

[davflaws]

Much easier to be in a place like NZ where some on social welfare can produce kids by the dozens as a lifestyle choice and have the state pay for that choice. All the time in the world to feed the wretched kids 'mother's milk' - and guess what, they don't.

And all these thousands of wretched kids will grow up morally tainted and become criminals, tree huggers, and rabid left wingers. They will adopt similar "lifestyle" choices and before we know where we are Marama Davidson will be PM and a Capital Gains Tax will make us all destitute.

Have a nice day!

[Balance]

They are already getting their act together, gaining market acceptance and market share - with the full support and resources of the China government at central and state levels.

And they will definitely, imo, impact upon the A2 milk market in the years to come because they are now entering that premium market.

I believe ATM (under Jayne) is doing the right thing in recognizing the competitive threat - hence the increased marketing and promotion spend.

Seriously, some of you need to research how the domestic China players are doing instead of myopically hoping that China players will never regain the confidence of China consumers.

To give everyone an idea of how quickly things are changing in China with the domestic IF market :

Junlebao only entered the IF market in scale in 2017, after commissioning a purpose built IF production plant in 2016. What gave the company confidence to go ahead with the brand new plant in 2016 was that China consumers were prepared to buy its IF products when it entered the market in 2014 and its market share was growing.

From a standing start, this company now sells over 50m cans of IF a year. Puts a lie, doesn't it, to the notion that China mothers will never trust China brands again.

It has commissioned another new plant which will come on stream in 2020 - https://www.dairyreporter.com/Articl...-Dairy-by-2020

Wake up, guys, and only invest with as much full knowledge as you can possibly obtain of what's happening in China.

[couta1]

To give everyone an idea of how quickly things are changing in China with the domestic IF market :

Junlebao only entered the IF market in scale in 2017, after commissioning a purpose built IF production plant in 2016. What gave the company confidence to go ahead with the brand new plant in 2016 was that China consumers were prepared to buy its IF products when it entered the market in 2014 and its market share was growing.

From a standing start, this company now sells over 50m cans of IF a year. Puts a lie, doesn't it, to the notion that China mothers will never trust China brands again.

It has commissioned another new plant which will come on stream in 2020 - https://www.dairyreporter.com/Articl...-Dairy-by-2020

Wake up, guys, and only invest with as much full knowledge as you can possibly obtain of what's happening in China.

A2 is the future of milk worldwide China is only the current flavour of the moment, I invest in A2 because of its worldwide potential.

[Sideshow Bob]

tomm, I returned from a business trip to China (primary produce focus) and after observing how things are changing over there, I think the world, but especially NZ which is ultra-dependent on China trade, are making a very grave mistake if they think that the mistrust of China food and products is going to last forever.

For sure, the Chinese population are still gripped by the many appalling scandals associated with food integrity (or lack there of).

And one does not have to go far, just the local fruit shop, to see how perfect each fruit produced in China is - free from any blemish - to know that there's still abundant use of all kinds of chemicals (insecticide, fungicide). And so I steer clear of consuming any local China fruit - likewise, the Chinese who can afford to.

But the government there is definitely cracking down on food safety violations - starting with the imposition of very strict standards, the ramp up of supervision, the imposition of very severe penalties and requirement to account at a local level for any violations. The many businessmen who I talked to are all very aware of and operate to conform to the strict regime.

As all will be aware, violations there are treated as criminal acts and the criminals are subject to very harsh penalties - including the death penalty.

In time, say 3 to 5 years, when food safety issues are no longer at the forefront of basic consideration in China, the competitive edge enjoyed by foreign goods and food could become a thing of the past.

Definitely seeing this as well. Previously regulation had been pushed back outside borders - for importing companies to comply with, because they couldn't control what was happening inside the country. But agree there is a big push on standards. We are seeing it in our business - albeit with some levels of discrepancies between regions. Not only harder for importation, but processors under a higher level of surveillance, more spot checks, more unannounced audits, more testing etc.

Personally that distrust of many Chinese consumers in matters of domestic food safety will take a long time to break.

[RTM]

A2 is the future of milk worldwide China is only the current flavour of the moment, I invest in A2 because of its worldwide potential.

I think what you are saying with respect to A2 Milk may be valid Couta. But if it is.... it won't solely be the domain of the "The a2 Milk Company Limited". All / most milk will be A2 in time.

Take care.

[Balance]

Definitely seeing this as well. Previously regulation had been pushed back outside borders - for importing companies to comply with, because they couldn't control what was happening inside the country. But agree there is a big push on standards. We are seeing it in our business - albeit with some levels of discrepancies between regions. Not only harder for importation, but processors under a higher level of surveillance, more spot checks, more unannounced audits, more testing etc.

Personally that distrust of many Chinese consumers in matters of domestic food safety will take a long time to break.

When you consider we have had food scandals in NZ - from listeria in dairy & seafood products (Fonterra & Epicurean Dairy to name 2), adulteration of manuka honey, wine scandals (too many to mention) - it's only because they did not result in death which have protected NZ's reputation.

Let's hope it never does.

[Leftfield]

Well today is the day..... 11/11 armistice day for Kiwi's, and now fort the Chinese market it is also Singles Day with around $US 31 Billion sales to be racked up. Big Day for A2.

Read about it here.

[winner69]

Well today is the day..... 11/11 armistice day for Kiwi's, and now fort the Chinese market it is also Singles Day with around $US 31 Billion sales to be racked up. Big Day for A2.

Read about it here.

The important thing is that this year is that sales bound to be much higher than last year

[Sideshow Bob]

When you consider we have had food scandals in NZ - from listeria in dairy & seafood products (Fonterra & Epicurean Dairy to name 2), adulteration of manuka honey, wine scandals (too many to mention) - it's only because they did not result in death which have protected NZ's reputation.

Let's hope it never does.

Easy to forget about those. Indeed likely because they didn't result in any fatalities, while big news in NZ at their time, probably barely mentioned outside NZ in many key markets. Perhaps apart from Fonterra.