Consumer Staples

Australian Dairy Nutritionals soars on first infant formula from new plant

Mon 30 May 22, 12:05pm (AEST)
Infant Formula Baby Formula A2M 1

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Key Points

  • Australian Dairy Nutritionals Group has has produced first batch of milk powder at the Group’s new infant formula plant
  • Company now moving onto refining, formula production trials
  • First commercial production of organic A2 infant formula scheduled for June 2022, to be sold at Chemist Warehouse

Australian Dairy Nutritionals (ASX:AHF) has successfully produced the first batch milk powder to be used in infant formula from its new formula plant located in Victoria, with the company's share price up 19% today to 7.5c.

The company is now to proceed with refining and further production trials ahead of first commercial production next month. 

June will see the first batch of commercially produced A2 organic infant formula created at the facility at the same time a baby formula shortage continues to dominate parents’ concerns in the US and as global interest in the product picks up. 

(Source: Australian Dairy Nutritionals) A look at the product design of the Ocean Dairies formula range
(Source: Australian Dairy Nutritionals) A look at the product design of the Ocean Dairies formula range

Product to be sold at Chemist Warehouse

The company will sell its A2 product in Chemist Warehouse retailers under the ‘Ocean Dairies’ brand name.

Australian Dairy notes this will be the first Australian-made organic A2 formula, made with Australian milk, available to the domestic market. 

The company has further secured a domestic dairy licence and is fully certified for the production of both organic whole milk and skim milk powders. 

Retention of key staff to fast-track production

The infant formula range is to be “subject to normal audit protocols on commercial production of each organic formula product.” 

Two key personnel attached to the plant before its acquisition by the company are retained on-site with the workforce, which the company notes has allowed the rapid upskilling of the manufacturing team. 

Australian Dairy Nutritionals was formerly Australian Dairy Farms Group which notes its location in the ‘golden triangle’ of dairy production in Southwestern Victoria. 

Up 17.46% at noon today, the company appears to have received a welcomed updraft from Bubs Australia (ASX: BUB), up 40% after revealing a major deal with the US government this morning.

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Australian Dairy Nutritionals share price movement today.

Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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