A2 Milk needs its own dairy factories, Heard says

Specialty milk marketer The a2 Milk Company is eyeing further investment in dairy factories to de-risk the business and secure its future growth. A2 Milk’s processing partner Synlait Milk is the exclusive manufacturer for a2 Milk’s infant formula for the Chinese market, and holds the Chinese SAMR regulatory license for the product. Heard noted the company had recently made two significant appointments of specialists who would be instrumental in developing a2 Milk’s plan. A2 Milk expects to start implementing a five-year plan to build and operate factories in the 2023 calendar year, he said. A2 Milk had net cash of $816.5m at the end of its June 30 financial year, and this month began buying back up to $150m of its shares.