What Would Synlait Be Worth to Fonterra or a2 Milk?
Speculation of a possible joint move by Fonterra and a2 Milk to buy Synlait raises a much bigger strategic question, says agribusiness expert Dr Nic Lees.
Notification of the successful inclusion of a2 branded products imported by its distributor China State Farm Shanghai was received from China General Administration for quality inspection and
quarantine (AQSIQ) with the publishing of the updated AQSIQ Imported Brand List.
a2MC sought registration directly in association with Synlait Milk, its a2 Platinum infant formula processing and manufacturing partner, and Synlait Milk's interim contract provider, Auckland-based New Zealand New Milk Ltd.
New Milk early this month achieved manufacturer registration with Certification and Accreditation Administration of the People's Republic of China (CNCA) as an overseas manufacturer of infant formula.
Synlait Milk is expected to achieve the same registration following the approval of its Risk Management Plan by the Ministry for Primary Industries.
a2MC managing director Geoffrey Babidge says: "Registration will provide an important confidence boost for our distribution partner China State Farm and its sub distributors in our target markets in China.
"The market development programme paused while the registration process was progressing
and can now be reactivated together with new communication initiatives".
The company remains confident it has the systems in place to fulfil the ongoing criteria of China's regulatory agencies relating to the production, importation and distribution of a2 Platinum infant formula.
Prior to the May 1, 2014 implementation date for the new regulations, a2MC had positioned product in China to meet expected consumer demand until the next scheduled shipment arrived.
The regulatory changes affecting China have not impacted the production of a2 Platinum infant
formula for sale in other markets, including Australia and New Zealand.
a2MC says the company's financial results for the 12 months ended June 30,
2014 will be released during the week starting August 25, 2014.
