With increased concern around trade with China and the tightening of regulations in China regarding IF, I thought I'd point out the significant link between A2M and China, which may help protect A2M's Chinese market share somewhat.
All of A2M infant formula sold into China is manufactured, canned and labelled by Synlait in Canterbury, NZ.
The biggest Synlait shareholder is Chinese company, Bright Dairy, which holds ~40%.
A2M recently increase their shareholding in Synlait from 17.4% to 19.84% (good timing, at NZD 4.95 per share, now NZD 7.00)
Synlait hold exclusive rights to supply A2M's Chinese products until 2023.
AUGUST 2020 UPDATE:
A2M to conduct due diligence around the purchase of 75% of Southland-based Mataura Valley Milk for NZD 260m. The other 25% is owned by China Animal Husbandry Group.
From the announcement:
"The exclusivity arrangements are supported by MVM’s current majority shareholder, China Animal Husbandry Group (CAHG), whichwould retain a 24.9% interest in MVM alongside a2MC under the terms proposed. CAHG is a wholly owned subsidiary of China National Agriculture Development Group, which is also the parent company of a2MC’s strategic partner in China, CSFA HoldingsShanghai, Co., Ltd. (China State Farm)."
This would further strengthen the relationship between a2MC and China.