ATM - A2 Milk Corporation Limited

[Gregnz]

ATM Infant formula $44, Karicare A2 (improved formulation) $32

ATM can justify premium of 37.5%?

Only one way for price and margins to go now that new entrants have woken up to the market potential.

He’s talking about liquid milk.

[Balance]

He’s talking about liquid milk.

Understand - bottom feeder was asking about competition.

[Biscuit]

ATM Infant formula $44, Karicare A2 (improved formulation) $32

ATM can justify premium of 37.5%?

Only one way for price and margins to go now that new entrants have woken up to the market potential.

I think you will find both brands at various prices depending on whether it is for toddlers or infants and whether it is their premium or not-so-premium grades.

[Balance]

I think you will find both brands at various prices depending on whether it is for toddlers or infants and whether it is their premium or not-so-premium grades.

Like for like.

There’s only one premium A2 brand for ATM and Karicare. If there is more, I have not seen when I am at the supermarkets & Chemist Warehouse when I do my due diligence of what’s happening.

[Ruby]

be interesting to know who has access to the biggest A2 milk pool in NZ.

[Ruby]

Starting today, Fonterra is signing up farms to supply milk for The a2 Milk Company in the 2019/2020 season.











Mike Cronin, Fonterra Managing Director of Co-operative Affairs, says “Signing up New Zealand farms to significantly increase supply of high quality milk to The a2 Milk Company is a positive step forward. It clearly shows the strength of our strategic relationship, and our shared commitment to fast-track market growth and enable farmers to create additional value from their milk.”

The Co-op’s initial milk pool will be based in the Waikato around its Hautapu site and will support the production of ingredients. It is anticipated around 100 farms will be needed for next season.

Jayne Hrdlicka, The a2 Milk Company Managing Director and CEO, says “The a2 Milk Company is pleased to be making progress on our relationship with Fonterra. These farms will help support new growth areas for our company across existing and new markets. This is the next step in what we believe will be a fruitful long-term relationship with tremendous potential.”

The location of the milk pool was determined by several factors. Most importantly, the site needed the ability to manufacture the specific product in demand, produce relatively small batches and adapt easily to any product demand changes.

“While other regions were thoroughly considered, ultimately the decision must be demand-led. The ability to efficiently manufacture a range of products to meet that demand was the over-riding factor in choosing a site. As demand and product lines grow, we’ll look to expand the milk pool to enable more farmers to participate,” said Mr Cronin.

Most of the value from the relationship with The a2 Milk Company will be returned to all Co-op farmers through the dividend. Participating farms will also receive a premium for their milk.

Today’s development follows the national launch of the a2 Milk™ brand by Anchor from late September 2018.

[Gregnz]

be interesting to know who has access to the biggest A2 milk pool in NZ.

Yes. We all know who that is, hence why competition from other NZ brands will be capacity capped. That is unless the government somehow make it much easier to increase herd numbers, which I don’t think will happen.
I believe in addition to the current A2 pool, they are also planning to grow a large A2 milk
pool in Southland if the OIO give approval for the Mataura purchase.

[Balance]

He’s talking about liquid milk.

Our local Countdown sells Anchor A2 fresh milk at $6.40 vs Happy Valley Fresha A2 at $4.90.

ATM can hold the 30% premium?

Only one way for A2 milk price to go imo.

[Ruby]

Which gives the answer to many who question the benefit of the Fonterra agreement...A2M play the long game.

[dreamcatcher]

or you can buy online with delivery to china?
Out of curiosity, how long does it take to deliver from nz to china now?

Plenty of Chinese stores in Auckland selling all sorts of products but can order online delivery about 3 weeks door-2-door