increase font size
Nic Lees, Lincoln University, asks if Synlait's assets could be worth more to other owners than they are within Synlait itself.
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.
He asks if Synlait's assets could be worth more to other owners than they are within Synlait itself?
Lees, a senior lecturer in agribusiness management at Lincoln University, says both Fonterra and a2 Milk could benefit in different ways.
For a2 Milk, the attraction is specialised nutrition manufacturing.
"Synlait's Dunsandel plant remains important to its infant formula supply chain, and greater control could reduce manufacturing risk," he says.
For Fonterra, the opportunity may be less about owning another factory and more about gaining access to Synlait's Canterbury milk pool.
"Fonterra can optimise milk across a much larger South Island network, potentially directing it into higher-value products and processing streams," he says.
"This is something Synlait has not been able to do. Synlait has needed to switch from high-value infant formula to lower-value commodities when milk supply peaks."
For Bright Dairy, the majority owner of Synlait, the calculation is different again.
"It must decide whether selling now provides better value than continuing to support Synlait as an independent business," he says.
Lees notes that Synlait has said it is not involved in discussions, so this remains speculative.
"The question isn't what Synlait is worth today, but what its different assets are worth to different owners."
In the past, much has been made of the concept of farm to fork, but an Australian expert in food science and marketing with experience in the dairy industry, Dr Angeline Achariya, says the reverse of this slogan is critical to win modern day consumers.
Lynnette Hudson's 30-year obsession with Pinot Noir was sparked working vintage in Burgundy, seeing how subtle changes in terroir were expressed in the glass. It was, she says, "an elightening moment in every way".
A four year trial has reaffirmed that mixing plantain into dairy pastures can help reduce nitrogen losses to freshwater while maintaining milk production and profitability, say researchers.
Fonterra has opened its upgraded Chengdu Application Centre, bringing New Zealand dairy expertise closer to customers in one of China's fastest-growing regions.
Tatua chair Stephen Allen says he leaves the co-op with a deep sense of gratitude for the people who have contributed to its success.
B+LNZ's Wormwise veterinarian Mary Bowron has won the Best Sheep and Beef Vet of the Year Award in recognition of her outstanding contribution to New Zealand’s sheep and beef sector.
Researchers at Massey University are using a special piece of scientific equipment to improve the measurement of greenhouse gas emissions from pasture soils.
More signs of a booming kiwifruit sector.
OPINION: David Seymour and James Meager's plan to make it easier for farmers and orchardists to operate drones can best be described a 'courageous' move.
New Zealand wool is reaching new heights as air filtration companies move away from synthetic products to biodegradable alternatives.
Opuha Dam's ability to protect South Canterbury communities from major flooding has taken a significant step forward, with Opuha Water Limited (OWL) successfully commissioning a new outlet valve capable of releasing record volumes of water from the dam ahead of a weather event.
OPINION: After hogging the media limelight for telling a NZ Chinese MP to "go back home", Winston Peters has decided…
OPINION: With fuel prices soaring, one would have expected most farmers to be reclaiming excise duty on petrol.
