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The a2 Milk Company (a2MC) has successfully completed its acquisition of a 75% interest in dairy nutrition business Mataura Valley Milk (MVM).

The acquisition is strategically important as it provides the opportunity for a2MC to participate in nutritional products manufacturing, in addition to offering supplier and geographic diversification, as well as strengthening relationships with key partners in China.

Mataura Valley Milk is a state-of-the-art nutritionals processing plant, commissioned in 2018, and presents a powerful provenance story supported by high quality milk due to considerable investment in both the plant and on-farm to deliver nutritional products of the highest quality.

A key feature of a2MC’s investment in MVM is that China Animal Husbandry Group (CAHG) retains a 25 percent interest in the company. CAHG’s parent company China National Agricultural Development Group Co., Ltd. (CNADC) is also the parent company of a2MC’s strategic logistics and distribution partner in China, China State Farm.

Managing Director and Chief Executive Officer, David Bortolussi said the transaction represents an exciting new chapter for a2MC. “a2MC, with the support of CAHG, will work to build on the foundations established by the MVM team under the leadership of Chief Executive Officer Bernard May, and by local farmers supplying high-quality milk.  Our joint intention is that the business will be developed as a large-scale, world-class manufacturing facility for packaged nutritional products to be sold to consumers in China and other markets.”

Mr Bortolussi, said the transaction and the agreement between the parties represented the beginning of a new partnership between a2MC and CAHG, building on the existing strong relationship with China State Farm. “It brings a2MC even closer to our partners and consumers in China, and it strengthens the capability, support structure and commitment of our nutritional business there.”

Bernard May said the MVM team was excited to be partnering with a2MC, a highly successful business with global horizons and a strong existing business in Australia, New Zealand and China. “I look forward to working with the rest of the a2MC team to build an exciting future for MVM as part of this Group,” he said.

“Further investment is planned for the MVM site. This will be in addition to the significant funds invested by our founding shareholders to create a world-class nutritional business from a standing start. The success of that investment over several years is seen now in a2MC’s strategic investment, an expanding revenue base, a committed group of local farmers rewarded for supplying high-quality A1 protein-free milk, and the presence of more than 100 employees contributing to the local community.

“Our business is well advanced in developing local supply of A1 protein-free milk and as a growing business, we are actively engaged in recruiting further A1 protein-free milk supply at present.”

A Co-operative Partnership Agreement was signed earlier this week via an online ceremony linking the partners in Beijing, Sydney, Melbourne and Gore.

The President of CAHG, Dr. Xue Tingwu, said: “MVM has made many great achievements and today it has entered a new stage of strategic development. On behalf of CAHG, MVM and myself, I’d like to express my heartfelt thanks to all the leaders, colleagues and friends who care about and support MVM.”

Gore District Mayor Tracy Hicks said he was very happy to see Mataura Valley Milk take another step forward with the involvement of a2MC and further investment to come. “The success of the plant to date is a tribute to the MVM team and the investment and hard work of all the founding shareholders and suppliers. I have no doubt that the partnership with The a2 Milk Company will assist MVM to make an even more important contribution to our district and its communities.”

a2MC is a premium branded dairy nutritional company uniquely focused on products made with milk which naturally contains only the A2 beta-casein protein type. The company was founded in New Zealand in 2000 and has since grown to establish significant market positions in Australia and New Zealand, China and the United States, with market initiatives under way in a number of other countries.

a2MC was represented at the signing ceremony by Mr Bortolussi and the company’s Chief Executive – Greater China, Xiao Li. CNADC was represented by Mr Wan (Director) and Mr Lui (Vice President). CAHG was represented by Mr. Wang (Chairman), Dr Xue and Madam Ding (Vice President). MVM was represented by Mr May.

Xiao Li, CEO, The a2 Milk Company, Greater China and attendees from CNADC and CAHG at the signing event in Beijing. 

Mr Hicks, Mayor of Gore, NZ and Mr Bernard May, CEO - Mataura Valley Milk