Milk war a plus for niche player

THE milk price war is creating a small but steady flow of refugees from budget milk, which is proving lucrative for one premium product with an unusual sales pitch.

As the price war rages, A2 milk has lifted its market share to over 3.5 per cent, profiting handsomely with a premium-priced product, The Australian Financial Review reports.

Despite overall industry price­cutting, A2 milk sales have grown 8 per cent over three months since Coles announced a litre of its home brand milk would sell for a ­dollar on January 26.

“We believe [the price war has] actually sharpened the difference between us and our competitors,” A2 Dairy Corporation general manager Peter Nathan said.

According to A2 Dairy Corporation, most cows produce A1 milk, but a small selection are genetically different, and produce the A2 milk. The difference is that while digesting, A1 milk releases a substance called beta-casein morphin-7 (BCM-7). A2 milk does not release the substance.

Some studies “link” A1 milk with a range of maladies, from diabetes to sudden infant death syndrome, blaming BCM-7. Food Standards Australia’s fact sheet on A1 and A2 milk says the evidence is “very limited”, and Mr Nathan admits definitive proof is not in.

“It’s one of those areas where there’s a lot of evidence but not 100 per cent firm proof. We don’t deny that.”

Leave a Reply