Originally Posted by
xafalcon
I was going to quote one of you, but I couldn't decide who was the most appropriate
You guys/gals really don't understand Infant Formula at all. And if you don't understand the basic product, or the international market it is part of, how the heck can you make any sound decisions?
A2 is a tiny niche player. Compare to Mead Johnson, Danone, Nestle, Abbott. These are the main stream companies that Synlait is targeting.
The 3 brand rule is a game changer. It is being challenged at the very highest level in world trade. Because if it becomes law, it will severely limit access to the world's most lucrative (but very difficult) formula market in the world
The major companies will be forced into buying brand access through third party manufacturers to retain their market presence. But they have deep pockets, and the economics will stack up
A2 v's Multi-billion dollar companies.
Has the penny dropped yet?
If you think that Shanghai Pengxin bought dairy farms surrounding an IF company as a simple farming investment, I'd suggest a reality check is needed. How much are dairy farms making at current payout? It's not about farming as an investment. The acquisition is about a long term play into value added products. Shanghai Pengxin already do this with UHT at Miraka
As for the lactose comment above, I'm not wasting my time responding beyond saying - read the nutrition information panel. Case closed