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.
While the investment has come at a cost to shareholders in terms of debt servicing, Wilson says it has provided the co-op flexibility.
Speaking at the co-op's annual meeting in Waitoa today, Wilson says the co-op's debt gearing ratio will come down to 40-45% before the end of the season.
He says the increased capability will help maintain a good milk price for farmers.
"We have added 8m litres more capacity in the last year," he says.
"It has eliminated losses at peak and offers us flexibility to grow returns from value added products."
