Our Business Units > A2 Dairy Products

www.a2australia.com.au

A2 Dairy Products Australia (A2DP) has the exclusive rights for the production and sale of a2 milk™ products in Australia and Japan in association with A2 Corporation Limited of New Zealand. The rights relate to a series of patents and brand registrations that restrict other players in sourcing, distributing and marketing a2 milk.
 
In May 2009, FNP converted a convertible note investment into a 50% equity interest in A2DP.
 
There are 2 main forms of beta casein protein found in dairy milk. a2 milk™ is milk obtained naturally from dairy cows selected for their genetic makeup to produce milk containing only the A2 type of beta casein protein. Originally, before selective breeding, all dairy cows produced milk containing only the A2 form of beta casein protein. Over many generations, the A1 form of protein appeared through natural genetic mutation and has become the most common form in today’s herds and their milk.
 
Interestingly, beta casein found in human milk, as well as other mammals, is A2 like with no A1 proteins present.
 
Research has demonstrated that the A2 proteins are digested differently. A2 beta casein is digested into potentially useful bioactive peptides, whereas A1 produces a significant amount of a peptide called BCM7, a strong opioid or narcotic to the human body. Studies suggest that consuming dairy milk containing only the A2 type of beta casein protein as part of a well balanced diet may provide protection from a range of intolerances and allergies, as well assisting digestive function.
 
Under FNP management, A2DP has developed into a leading specialist milk brand and FNP management believes it has capacity for growth. The past 12 months has delivered strong growth in sales and profitability, with the business achieving an Operating EBIT of around A$1.0 m for the year ended 30 June 2009. This growth reflected increasing awareness of the potential health benefits of consuming a2 milk™ and improving shelf presence and availability. a2 milk™ fresh milk is now available in all mainland states of Australia.