A2 strikes deal with Fonterra, delivers strong profit

Jemima WhyteSenior reporter

Updated Feb 21, 2018 – 5.55pm, first published at 11.57am

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The $8.2 billion A2 Milk Company has struck a sweeping deal with New Zealand's Fonterra further validating the branded milk minnow as a major player, as it announced a $NZ98.5 million ($92 million) December half profit underpinned by surging infant formula sales and stronger sales to China.

Under the "comprehensive strategic relationship" with Fonterra, farmers will supply A1 protein-free milk to A2 and develop herds, sell A2 fresh milk into the New Zealand market and assist A2 into new international markets where Fonterra has existing operations.

Jemima Whyte writes on business, specialising in companies, capital markets and innovation. Jemima has reported on business for The Australian Financial Review for more than 13 years.