SML - Synlait Milk Ltd

[Master98]

Has anyone any advice, or a progress report perhaps, on the commissioning status of the new dry blending and consumer packaging facility, due to be ready around about now ?

My understanding is that the CNCA (Certification and Accreditation Administration of the People's Republic of China) requires that dry blending and packaging be performed at the manufacturers facility. With SML constructing a new facility, it’s completion and subsequent approval is required before regulatory requirements can be satisfied, and a risk management plan approved by the MPI.

Should be any time now if the construction and commissioning schedule is on time.

https://www.nzx.com/files/attachments/193258.pdf.

http://www.stuff.co.nz/business/farm...agement-lineup
Synlait Milk is in the final stages of building a $27 million dry blending and consumer packaging facility, and expects to be granted registration to export finished infant formula to China following the approval of its plan by the Ministry for Primary Industries.

[MAC]

The MPI having completed it’s verification audits is good news, just awaits the Chinese regulators now.

http://www.radionz.co.nz/news/rural/...-still-waiting

[BlackPeter]

The MPI having completed it’s verification audits is good news, just awaits the Chinese regulators now.

http://www.radionz.co.nz/news/rural/...-still-waiting

Maybe somebody knows already a bit more (or is just optimistic?) ... huge volumes going through today (traded value already well beyond $1M) and price pushed up to 253. Somebody wants this stock.

[K1W1G0LD]

This company are not good at updating investors of their progress , here is a discussion I've had with them via email

Sent: Thursday, 17 July 2014 9:29 a.m.
To: Investors
Subject:

From your general news announcement dated 1/5/14

The Ministry for Primary Industries (MPI) has confirmed that it expects

Synlait Milk to receive registration following the approval of its Risk

Management Plan by MPI for its dry blending and consumer packaging facility.

Construction of this facility is scheduled for completion in June 2014.



We are now well into July , where is the update to investors/shareholders.


Here is their reply from Michael Wan (media enquiries) received this AM


Dear Greg

I can confirm that construction of the blending and consumer packaging facility is complete and commissioning began in June 2014. At this stage we have meet all deadlines as previously stated with no material change, and therefore we have not made any further update.

As per our previous announcements the next step is to obtain approval of our Risk Management Plan from the Ministry of Primary Industries. We expect to receive this following a final verification audit at the end of this month. We are confident of receiving the required Chinese regulatory approval to export finished infant formula into China following the approval of this plan.

Kind regards

Mike

[Citizen Erased]

This company are not good at updating investors of their progress , here is a discussion I've had with them via email

Thanks for that.

I think it's going to take a long time to recoup my losses on this stock.

[sharer]

Thanks to Kiwigold and Snapiti (& others). Most welcome sprinkles on an information desert.

[tzbang]

"Shares in A2 Milk Co jumped 9.8 percent from a 15-month low on news the milk marketer has won Chinese regulatory approval to export its a2 Platinum infant formula. Milk processor Synlait Milk [NZX: SML] is still waiting for registration." http://www.nbr.co.nz/article/a2-milk-secures-chinese-licence-synlait-still-waiting-bd-159546

[K1W1G0LD]

"Shares in A2 Milk Co jumped 9.8 percent from a 15-month low on news the milk marketer has won Chinese regulatory approval to export its a2 Platinum infant formula. Milk processor Synlait Milk [NZX: SML] is still waiting for registration." http://www.nbr.co.nz/article/a2-milk-secures-chinese-licence-synlait-still-waiting-bd-159546

Well ATM Chinese approval effect did'nt last long , too reliant on Synlaits fortunes here I believe.
good to see SML shareprice advancing in anticipation of registration being granted

[jamiec26]

Capture sml.PNG my small mind..keeping my self entertained on this stale stock.

[K1W1G0LD]

Interesting insight here from someone who should know , re milk prices in general and China in particular, from Stuff this AM.

Cloud over milk prices 'will lift'


GERARD HUTCHING

Dairy farmers take heart - Chinese demand and dairy prices will bounce back towards the end of the year.

That is the reassuring assessment from Myfarm CEO Andrew Watters whose company has 47 dairy farms under management across the country.

His optimism is based on recent reports from Goldman Sachs and the United States Department of Agriculture (USDA) forecasting a 30-50 per cent higher Chinese demand for whole milk powder this coming year.

"The fundamental drivers of good farm returns have not changed in the past few weeks. The fluctuation in milk prices between last season and this is just another example of the volatility that New Zealand dairy farmers have to manage," Watters says.

"Well run dairy farms with moderate debt and clear business plans can still generate good levels of operating profit at payouts $6.50 per kilogram of milksolids and above."

Many analysts are predicting the payout for next season will drop as low as $6/kg milksolids.

Half the dairy debt of $32 billion is held by 10 per cent of farmers, who will be hard hit by price falls.

Since February 18 the average whole milk powder price has fallen by 38 per cent, after reaching record highs.

Watters said although China had stockpiled milk powder, they would soon have exhausted those supplies.

Rising feed prices, food safety scares and foot and mouth disease problems meant their own farmers could not meet the expected demand. Chinese milk prices are now 30 per cent above the world average.

He said demand would not drop for another five years, guaranteeing prices would remain high.

US and EU farmers are potential competitors for the Chinese market but their costs of production are significantly above New Zealand's because of their more expensive confinement systems.

Westpac chief economist Dominick Stephens agreed with Watters' analysis.

"Temporarily the wholesalers have to clear their stocks before buying again and that temporarily depresses the price.

"Dairy auction prices will be down for the next two auctions till the last quarter of the year, but then we'll expect a substantial upturn," Stephens said.

Watters also discounted the EU and US as competitors in the whole milk powder market because they would have to switch from producing skim milk powder and cheese, and at present they did not have the capacity to process whole milk powder.