The A2 Milk Company Ltd (ASX: A2M) share price was out of form in March.
During the month, the embattled infant formula company's shares dropped 5.2%.
This compares unfavourably to a 6.4% gain by the ASX 200 index over the period.
What happened to the A2 Milk share price last month?
The A2 Milk share price came under pressure last month for a couple of reasons.
The first was comments out of the company that revealed that its operations have been impacted by the recent flooding in Queensland.
The company told The Australian that "flooded paddocks, severe pasture damage, and rising floodwaters, […] have cut off roads in low-lying areas, restricting access for milk tankers." It also warned there could be delays collecting milk from farms.
What else?
Also appearing to weigh on the A2 Milk share price was news that smaller rival Bubs Australia Ltd (ASX: BUB) is launching a competing A2-protein based infant formula product.
The new Bubs Supreme formula range will be on the shelf in 500 Coles Group Ltd (ASX: COL) supermarkets from May. This expands the company's shelf presence in Coles stores, which already includes Bubs easy-digest goat milk formula and Bubs Organic grass-fed cow's milk formula.
And while this won't be the first competing product and Bubs' track record of launching new products is decidedly average, A2 Milk investors appear a little concerned by the move. Particularly given the difficult trading conditions it is already facing in the key China market due to a slowing birth rate and a shift in consumer preference for Chinese infant formula brands.
Is this a buying opportunity?
One broker that is likely to see the A2 Milk share price weakness as a buying opportunity is Bell Potter.
Late last month it retained its buy rating with a trimmed price target of $7.15. This compares to the current A2 MIlk share price of $5.20.
