Milk sales in China hammered by supply chain issues

Milk producer A2 Milk says its financial performance continues to be affected by ongoing supply-chain challenges, with sales in China expected to suffer. The company previously linked disruptions in April to the US-Iran war and its impact on global supply networks, saying those effects materially hit product availability during the final fiscal quarter. A month later, A2 expanded a recall of its instant formula product in the US. It attributed April shortfalls to factors including strong demand in the prior quarter, freight issues, a Synlait production backlog, longer product release times, and added customs clearance requirements and testing. Although some consumers shifted to English-label products in China, a “large proportion” moved to alternative brands. A2 says contributing factors are now substantially resolved, with stock levels returning to target, but it still expects fiscal 2026 sales to be down about 14% versus 2025.