What quantity A2 milk supply does Synlait have?
Quote:
Originally Posted by
Snoopy
This $3 value is a consequence of supply constraint.
Just looking a little further into the supply constraint issue.
The latest Synlait presentation (27th October 2017)
http://www.asx.com.au/asxpdf/2017102...38tm46qrgx.pdf, page 9
Shows Synlait have 60A2 milk fams under contract, producing 19.8million kg of milk solids.
From this page:
http://www.smartbusinesscentre.co.nz...y-the-numbers/
"20.7 billion litres of milk was produced in the 2014 season, containing 1.8 billion kg of milksolids."
That contracted output should produce: (20.7/1.8) x 19.8million = 228 m litres of milk (A)
Total A2 milk Revenue from "Infant formula" for FY2017: $394.026m (B)
Assuming all A2 revenue from Sylait milk supply is from A2 Platinum, then dollars received per litre was:
$394.026 / 228 = $1.73 per litre
$1.73 is the manufacturer's supply price, not the end market sell price. This represents a 3.5% market share of the Chinese infant formula market (AR2017 p22) for the June FY2017 quarter, up from 2.6% in the June 2016 quarter.
SNOOPY