Why the a2 Milk (ASX:A2M) share price is sinking lower again

The A2 Milk Company Ltd (ASX: A2M) share price was out of form on Monday and tumbled lower again.

The infant formula and fresh milk company’s shares dropped 3% to $10.62.

This means the a2 Milk share price is now down almost 50% from its 52-week high of $20.05.

Why is the a2 Milk share price sinking lower?

Investors have been selling the company’s shares over the last few months after COVID-19 had a negative impact on its sales and profits.

After benefiting greatly from panic buying and pantry stocking at the height of the pandemic, demand for its infant formula has softened over the last couple of quarters.

But the greatest impact has come in the daigou channel. This is where Chinese tourists and students buy products and send…