The days of cafes getting milk in plastic bottles may be numbered if two young Dunedin entrepreneurs have their way.
This year was pivotal in the “transformative dynamic” of a2 Milk Company and it had “really only just scratched the surface” of its potential as a business, chief executive Jayne Hrdlicka says.
The A2 Milk Co more than doubled its profit to $195.7 million in the year to June 30 – over 116% ahead of the previous financial year.
A2 milk market leader a2 Milk Company (a2MC) is eyeing a joint infant formula production facility with Fonterra in New Zealand.
Federated Farmers national dairy chair Chris Lewis says he is looking into transitioning to an A2 herd but he questions whether the premium will stick if everyone switches.
Farmer demand for A2 dairy bulls for the upcoming mating season is at record levels, says the marketing arm of World Wide Sires NZ.
Agribusiness expert Keith Woodford says within the next five years China could be accepting only A2 milk products.
Asked if Jersey farmers should start breeding for A2 milk – achieveable within five years in Jerseys but at a price in genetic diversity – Fonterra chairman John Wilson advises, “select for the animals which would give the best genetic gain – full stop”.
a2 Milk Co has struck a deal with Fonterra that will enable it, over time, to diversify its milk sourcing, processing and manufacturing to meet growing demand for its products, the company says.