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.
Council chairman, Duncan Coull, says today's announcement of a 45 cent fall in the 2015-16 forecast Farmgate Milk Price, from $4.60/kgMS to $4.15/kgMS, is one that will further amplify the effects of the current low milk price environment on Farmers and their businesses.
"Farmers are very aware that this is a global story which is now having a significant local effect. Strong supply out of Europe coupled with flat demand is driving market sentiment as evidenced by the GDT results.
"While acknowledging that the milk price is something that is largely out of our co-op's control, farmers are always looking to the Board to communicate any significant price fluctuations that occur throughout the season in a very timely manner.
"Looking forward our Farmers will be expecting our co-operative model, which sees shareholders benefit from milk price and the value-add side of the business, to deliver for them in terms of the total available for payout.
"In the interim I encourage farmers to sit down with their rural professionals and seek guidance on how best to navigate through these tough times.
"Of equal importance is that they stay connected to their communities, and engaged with their co-op, especially in the current environment."
