A2 milk is making a splash in the Australian dairy marketplace

From Bloomberg.com

“For Gillian Fyvie, a splash of milk on her cereal typically led to stomach ache, bloating and a swollen tongue. Not since making the switch.

Fyvie’s symptoms were avoided not with soy, organic or even lactose-free dairy, she says, but a type of cows’ milk from a2 Milk Co. The Sydney-based company is gaining an international following for its products, developed from the premise that the milk most of the industrialized world has consumed for generations is causing everything from digestive discomfort to diabetes.

“I tried it expecting to be allergic,” said the 30-year-old nurse from Inverness, Scotland. “I didn’t react. I love it. I’m going to look into making ice cream with it, maybe making yogurt, too.”

Since its debut in 2003, a2 Milk has challenged the common wisdom in dairy retailing, grabbing almost 10 percent of the fresh milk market in Australia with a product that sells for about A$2.80 a liter ($2 a quart), more than double the price of regular house-brand milk. Last month, the company raised its profit forecast and predicted revenue may surge 126 percent to as much as NZ$350 million ($230 million) in the year ending June 30.

A1 Versus A2

The point of difference is that a2 Milk products are sourced from dairy cows that produce only the A2 type of beta-casein protein, whereas most dairy contains both A2 and A1. Sales of the company’s A1-free fresh milk, milk powder, ice cream and other dairy goods drove an 80-fold increase in first-half profit and enabled a2 Milk to fund a foray into China’s booming $19.9 billion market for infant formula….”

More on Bloomberg.com

Here on the Bovine, we reported on the A1, A2 milk issue in 2009. Click here for that story.


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