Dairy group Australian Dairy Nutritionals (ADN) says its production of an organic A2 whole milk powder is an Australian first, with commercial production of an infant formula on track for Q1FY23.
Milk for the product has been produced at the company’s three farms in Brucknell and Yaringa, Southwest Victoria. Its infant formula plant is located nearby in Camperdown.
Earlier this year, the infant formula plant has secured its domestic dairy licence and certification to produce organic whole milk and skim milk powders.
ADN CEO Peter Skene said that the last 12 months and the global supply chain for infant formula ingredients had seen “no shortage of challenges”, but the company had achieved “key strategic milestones”.
In December last year, ADN announced a joint venture with ASX listed, health and wellness brand and distribution company Wellnex Life, for Wellness to sell ADN’s infant formulas through its retail and pharmacy distribution network.
In February, the company announced the Ocean Road Dairies organic A2 infant formula and Gradulac Gentle infant formula would be ranged in Chemist Warehouse. The three stages of Gradulac are now stocked nationally, with ranging of the A2 formula targeted for 2HCY22.
Skene said once the recently commissioned infant formula plant is fully operational the group expects to use a significant proportion of the organic A2 protein milk produced on its farms in the production of its organic A2 infant formula.
ADN also concluded its subscription agreement with IJ Funds Management (IJFM), with the $2.75 million raised under the placement, giving IJFM a holding of 7.75 per cent of AHF's issued capital.
The placement falls short of the March announcement that said the funds management firm would raise $4.5 million.
ADN said the funds raised would be used to expand distribution and marketing of its products in China and that IJFM had strong knowledge and experience in the Asia market with substantial networks in the region.
