Meanwhile, the first time milk with predominantly A2 protein was marketed anywhere in the world was in March 2003 in Australia, by a dairy farm unaffiliated with A2 Corporation, run by the Denniston family. Shortly thereafter, an Australian company called A2 Dairy Marketers licensed patent rights and the A2 trademark from A2 Corporation and started offering Australian dairy farmers a premium price for their milk, if it was shown to be pure A1 protein–free milk. The Dennistons and A2 Dairy Marketers marketed milk with predominantly A2 protein boldly, touting its safety and the dangers of standard milk. However, Australian laws forbid companies from making misleading health claims about food, and in September 2004, A2 Dairy Marketers in Australia was fined $15,000 after it pleaded guilty to six breaches of those laws.Staff, New Zealand Herald. 28 April 2003 A2 milk launched in NZ, outside Fonterra's structure The company, which had been in a tenuous financial situation since beginning trading in May 2004, went into administration in October, and was liquidated in November, owing farmers and processors tens of thousands of dollars.Shelley Lloyd for the Australian Broadcasting Corporation. 17 November 2004 A2 milk liquidates A $1.27 million federal government grant awarded to the company in August as part of the Regional Partnerships Program was also cancelled.Australian Senate finance and public administration references committee report on Regional Partnerships and Sustainable Regions programs, October 2005, pages xiv, 97–100 A2 Corporation set up a new subsidiary and licensee, A2 Australia, to market and produce its product. A2 Australia established new contracts with the dairy farmers who had A1 protein–free herds, promising better payment terms—a week in advance instead of once per month, after shipment.
