Norish, the cold storage company based in the UK, has said it is exploring entering the A2 milk protein market.

Ahead of its AGM this week, Norish chair Ted O’Neill said the group was exploring an A2 protein milk feasibility programme. While details were limited, he added that it would have “a much clearer picture within the next 10 to 12 months”.

The group, which has a 355ac leased dairy farm at Cantwellscourt Farm in Kilkenny, said the farm was “making substantial progress”.

He added that there had been a good start to the year to April on the farm and that this would translate into “markedly improved financial performance over 2019”.

The farm, which aims to milk 500 cows, made an operating loss of £378,000 (€428,000) last year, up from a £148,000 (€168,000) loss in 2017.

It blamed the cold spring and subsequent summer drought, which resulted in lower pasture production and higher feed costs that it said affected milk production to some extent. Milk supply was 18% up overall in 2018 on the prior year.

At the end of 2018, the farm had £3m (€3.4m) in assets after investing £1.2m in 2017 and £330,000 last year.

Norish is exploring the feasibility of A2 milk.

Last year, the farm had sales of £527,000 (€598,000). This was up from £488,000 (€553,000) in 2017. It did not provide updated figures for the first four months of 2019.

Norish plc is incorporated in Ireland and its shares are listed on the London stock exchange.

What is A2 milk?

Originally, all cows produced milk containing only A2 protein. Genetic variation resulted in mixed herds with two types of proteins (A1 and A2).

Most cows’ milk brands today contain a mix of both A1 and A2 proteins. All A2 milk products come from cows that have been selected to naturally produce only A2 protein and no A1. A2 milk looks like milk and tastes just like ordinary cows’ milk. The only difference is in the type of cow.

Research over the years has claimed that many people who have digestive discomfort when drinking ordinary cows’ milk find A2 milk easier on digestion.

The A2 Milk Company in New Zealand has pioneered the development of this type of milk and carved out a large market across the world.

Today, the company is the second most valuable company on the New Zealand stock exchange valued at NZ$11bn (€6.5bn). With a view to enhancing its supply chain and broader international market development, the company announced it was partnering with Fonterra last year.