SML - Synlait Milk Ltd

[Sideshow Bob]

Pokeno plant construction on target. Test runs due August / September https://www.stuff.co.nz/business/far...on-this-spring

Would be interesting how many of those Waikato farmers are A2, or in the process of converting....??

[Beagle]

Pokeno plant construction on target. Test runs due August / September https://www.stuff.co.nz/business/far...on-this-spring

Very good news that everything is on track and I really liked the comment that there's plenty of room for expansion of the facility down the track. Collection within 150 km's radius is basically all of the Waikato.

[freddagg]

Thanks for the replies previously guys, great points from each side.
It's intriguing that atm price is holding steady, while synlait seems to have tumbled.
Any ideas as to how this has happened?
sl

Dairy factories are just big boxes full of stainless steel. Easy to replicate, and since the townies have decided farmers are not allowed any more cows there are already too many factories.
On the other hand ATM has developed an enormously powerful brand that would be very difficult to replicate.
One bears no correlation with the other.

[couta1]

Dairy factories are just big boxes full of stainless steel. Easy to replicate, and since the townies have decided farmers are not allowed any more cows there are already too many of them.
On the other hand ATM has developed an enormously powerful brand that would be very difficult to replicate.
One bears no correlation with the other.

Exactly, ATM has global expansion potential, SML does not.

[peat]

Dairy factories are just big boxes full of stainless steel. Easy to replicate, and since the townies have decided farmers are not allowed any more cows there are already too many of them.
On the other hand ATM has developed an enormously powerful brand that would be very difficult to replicate.
One bears no correlation with the other.

But ATM's brand relies on Synlait having Chinese certified boxes of stainless steel which I'm not at all sure are easy to replicate. I also seem to recall some contractor going under which could well have delayed the making of those easy to replicate stainless steel boxes but Synlaits management had done a smart thing and werent affected (or if so would be compensated)

Obviously the relationship between these two companies is symbiotic but my view is that ATM needs Synlait more than the other way round.

[minimoke]

Obviously the relationship between these two companies is symbiotic but my view is that ATM needs Synlait more than the other way round.

ATM also has Fonterra (and a boatload of cash)

[peat]

ATM also has Fonterra (and a boatload of cash)

Yeh thanks for posting the article earlier MM - good to know for sure

Can money buy you Chinese Certified A2 milk though.
I dont think Fonterra make much of the stuff as yet.

[minimoke]

Can money buy you Chinese Certified A2 milk though.
.

I'm not one to cast aspersions on the Chinese but...............

[freddagg]

Yeh thanks for posting the article earlier MM - good to know for sure

Can money buy you Chinese Certified A2 milk though.
I dont think Fonterra make much of the stuff as yet.

About half the milk produced in NZ is A2. Just a matter of separating from A1, not that hard

[minimoke]

About half the milk produced in NZ is A2. Just a matter of separating from A1, not that hard

Its cows that produce A2. According to guru Keith Woodford "

LIC advice, based on DNA information held within their national database, is that 44 percent of New Zealand Friesians are A2, 53 percent of Kiwi Cross are A2, and about 66 percent of Jerseys are A2". An interesting article her :https://keithwoodford.wordpress.com/2018/03/13/a2-herd-conversion-strategies/