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.
In December 2019, the co-op collected 184 million kgMS from farmer suppliers: 0.6% down for the same month in 2018, according to its monthly global dairy update.
Season to date collection was over 909m kgMS, 0.5% down on the previous season.
North Island milk collection in December was 106.4 million kgMS, down 2.5% on last December. Season to date collection was 564 million kgMS, down 0.4% on last season.
Fonterra says December weather had some impact on pasture quality in some northern regions, however grazing crops are doing well, and cow condition remain very good.
South Island milk collection in December was 77 million kgMS, up 2.2% on last December. Season to date collection was 345 million kgMS, down 0.6% on last season.
“Favorable weather conditions across Canterbury continued, allowing for excellent pasture growth rates,” it says.
Overall milk solids collection in NZ fared slightly better than Fonterra’s.
New Zealand milk production was down 0.5% on a litre basis (up 0.2% on a milk solids basis) in December compared to the same period in the prior year.
