The A2 Milk Company Ltd (ASX: A2M) share price is sliding again today, down 3% in late morning trade.
A2 Milk already holds the unfortunate title as leader of the Dogs of the S&P/ASX 200 Index (ASX: XJO) over the past 12 months. That’s the list of the 10 worst performing shares on the ASX 200.
And with the A2 Milk share price down 68% since this time last year, the company edges out ASX 200 tech share Appen Ltd (ASX: APX), down 66%, for the worst performing share.
Year-to-date, A2 Milk is the third worst performing share on the ASX 200, down 46% so far in 2021. Appen, in case you’re wondering, is down 50% this calendar year.
What’s going on with the A2 Milk share price?
The A2 Milk shares hit an all time closing high of $19.83 per share on 3 July 2020. At time of writing it’s trading for $6.19 per share, down 69% from the record.
Though it’s worth noting that investors who bought shares when the company first listed in April 2015 will still be sitting on paper gains of more than 1,000%.
The A2 Milk share price received a bit of a reprieve earlier this month when the company reported it had acquired a 75% interest in Mataura Valley Milk, with China Animal Husbandry Group retaining the other 25%.
And it’s China that many analysts are pointing to as putting pressure on the A2 Milk share price. Specifically, fears of increased regulation on dairy products as the Chinese government ramps up regulations across numerous imports.
The resurgence of COVID-19 in Australia and the resulting lockdowns also appear to be driving concern over shorter-term demand.