"Synlait said last week that the company and its customers were well prepared because they had sufficient stocks of product manufactured before May 1 - as well as stock held in China - to cover the period until it becomes registered after the completion of a new canning line at its Dunsandel plant next month. It appears that Synlait, which did not return calls yesterday, may now be relying solely on product already in the Chinese market."
surely being Chinese owned should help them out a bit.. ('lest I'm off the markt with this)
Knox told exporters yesterday that the Chinese authorities had back-tracked on a previous advisory that all infant formula produced before May 1 could enter China, regardless of the manufacturer's registration status.
He said China had issued a notice on Sunday stating that all infant formula imported into the country must be produced by registered manufacturers.
Synliat was relying on this, therefore no atm milk powder can be exported to china - If you discount milk powder out of atm fundamentals for the foreseeable future it is way overvalued now, would expect a big selloff on this news
Yes we would hope an announcement from A2 today. Since this news was out yesterday afternoon before market close maybe if there is a panic sell off it won't be to bad.
from the ATM statement a few days ago it appears they have the stock in China now - "Currently there are sufficient levels of inventory of a2 Platinum(TM) infant formula held by our distribution partner China State Farm State to ensure consumer demand in China continues to be satisfied" - so as it stands they feel they have enough stock in China until the new plant is accredited. Flip side of the new rules of course is that the companies that do get approval now and in the future will face less competition from other brands in establishing themselves in the Chinese market
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