A2 Milk Company (ASX:A2M) and Synlait Milk (ASX:SM1) land SAMR renewal in China

• The A2 Milk Company (A2M) and manufacturing partner Synlait Milk (SM1) receive Chinese regulatory approval to continue producing A2M infant formula until early next year
• Synlait, which manufactures the A2M China-label infant formula, says it has received State Administration for Market Renewal (SAMR) for the product
• This means Synlait will be able to continue manufacturing the product until February 21, 2023, before having to re-register the formula under new food safety standards
• A2M says it will now work closely with Synlait to ensure the China-label infant formula meets the new food safety standards in China
• Shares in A2 Milk are up 4.23 per cent to $5.80 at 10:31 am AEST, with Synlait trading grey at $3.12 at the same time.

The A2 Milk Company (A2M) and manufacturing partner Synlait Milk (SM1) have received Chinese regulatory approval to continue producing A2M infant formula until early next year.

Synlait, which manufactures the A2M China-label infant milk formula (IMF), said it had received State Administration for Market Renewal (SAMR) for the product.

The renewal will allow Synlait to produce A2 Milk’s current registered product in China until February 21, 2023, before having to re-register the formula under new food safety, or GB, standards.

A2M said it was now working “closely together” with Synlait to register its IMF products under the new regulations.

“We are pleased that our current product registration has been renewed, effectively to late February 2023, and we will continue to work collaboratively with Synlait and SAMR in relation to the registration of our China-label IMF product formulated in line with China’s new GB standards,” A2 Milk Managing Director and CEO David Bortolussi said.

“We remain focused on the China market and are looking forward to the opportunity to make our newly formulated infant milk product available to parents and infants in China.”

Meanwhile, the company noted that New Zealand’s Ministry for Primary Industries (MPI) had cooperation arrangements in place with Chinese regulators which positioned New Zealand well in relation to China’s registration processes.

A2 Milk owns roughly 20 per cent of Synlait.

Shares in A2 Milk were up 4.23 per cent to $5.80 at 10:31 am AEST, with Synlait trading grey at $3.12 at the same time.