A2 changes name
THE BOARD OF A2 Corporation has resolved to change the name of the company to The a2 Milk Company Limited effective from April 8, 2014.
And if expansion plans – here, and for infant formula into China and the United Kingdom –come to fruition, it could be looking for more New Zealand suppliers, he told Dairy News.
It was important for New Zealand dairy farmers to see the company has been able to demonstrate commercial success and is continuing to build momentum, Babidge says.
In New Zealand A2 Corporation has been in discussion with its sole remaining non-exclusive licensee Northland-based Fresha Valley “about how we can both work together to find the opportunity to further grow the business, particularly the A2 fresh milk business in New Zealand. We’ve progressed in those discussions. That could provide opportunity for further farmer supply.”
Also in respect of New Zealand, Babidge says “I can’t overstate the opportunity with the manufacture of infant formula [for China] and the agreement we have in place with Synlait sourcing A2 milk from A2 cows to supply to the Synlait manufacturing facility at Canterbury.”
Babidge says the first production run of infant formula is to occur this December and A2 is “very advanced” on appointing an in-market distributer for the product in China. “Those are key initiative and opportunities which have relevance for New Zealand farmers.”
At this stage A2 believes it has sufficient producers to meet demand. “We try and develop a supply base ahead of the curve but the interesting thing will be how quickly the A2 infant formula does take off.
“We’ve got some positive view about the potential there. But it could also ramp up still further and we could be chasing some supply quickly…. We hope we will have that issue to deal with.”
Cows either produce A1, A2 and/or a combination of both proteins. In herds in New Zealand, Australia and the UK, 30-33% -- up to one-third of cows – are testing pure A2.
“The process we follow in Australia and now in the UK is there’s a herd that is segregated, and the farmer then builds that herd over time.
“We have testing arrangement in place in New Zealand, Australia, the UK and the US so we can very quickly put things in place very quickly.”
