UPDATE: SHARES in Wattle Health jumped nearly 50 per cent in three days last week after the company announced it had received Chinese approval for a milk powder product.
The listed Australian dairy company has received approval for sale of 1kg retail bags of its grass-fed milk powder for supermarkets, pharmacies and “bricks and mortar” retail outlets.
Wattle Health executive chairman Lazarus Karasavvidis said the approval was an important achievement for the company, as consumption of milk powders was greater than infant
Mr Karasavvidis said Chinese approval for sale of the milk powder would expand its brand awareness. “This is a continuation of our China market strategy and ongoing commitment to making healthy, pure 100 per cent Australian-made produce available to our China consumers and supporting our extensive distribution partners,” he said.
A day after Chinese approval for the milk powder was announced, Wattle Health said Corio Bay Dairy Group — a joint venture it had with Organic Dairy Farmers of Australia and Niche Dairy — had bought land in Geelong to build a dedicated plant for a spray dryer for organic milk powder production.
The plant, to be located adjacent to ODFA’s existing dairy factory, is expected to be completed in September next year.
Both stock market announcements pushed Wattle Health’s share price higher, rocketing from $1.045 a share last Tuesday to close $1.555 on Friday.
By early trading today, the share price had fallen back to $1.405. Mr Karasavvidis said Wattle Health had first and last rights to powders produced at theGeelong plant.
He said it would have annual capacity to process 60 million litres of organic milk into powders. He said ODFA had current organic milk production of about 35 million litres from
its members but another 20 million litres under contract from farms converting to organic milk production.
“There is a further 25 million litres under contract which they are securing (from farmers) joining their co-op.”
As seen in the Weekly Times on the 31st July 2018