What Would Synlait Be Worth to Fonterra or a2 Milk?
Speculation of a possible joint move by Fonterra and a2 Milk to buy Synlait raises a much bigger strategic question, says agribusiness expert Dr Nic Lees.
The 2015-16 forecast farmgate milk price dropping from $4.15/kgMS to $3.90/kgMS is reflective of the current market conditions.
Coull says: "Farmers understand what the market realities are and continue to make adjustments where they can, but today's announcement, coming so close on the heels of January's 45 cent milk price reduction, will magnify the effects on our Farmers' businesses.
"This news is difficult for us to hear and for our co-op to give however, that it was provided in a timely manner at least lets us know exactly where we are placed and enables us to prepare accordingly.
"Farmers now need their co-op to drive the business hard, execute strategy, and deliver cash to them. In essence, farmers want to see the full benefits that the cooperative model offers and we will all be watching March's interim results with great interest.
"This current environment is no doubt placing added personal stress on farm so it's imperative we keep in touch with our neighbours, friends and families, and all support each other where we can.
"I also ask that farmers stay connected with their co-op and contact their local Shareholders Councillor if they have any questions, need advice, direction or support."
