Synlait's back
OPINION: After years of financial turmoil, Canterbury milk processor Synlait is now back in business.
Canterbury milk processor Synlait has settled a long-running dispute over exclusive manufacturing rights and pricing with a cornerstone shareholder, a2 Milk Company.
The two parties have been involved in arbitration for nearly a year.
Under a deal announced to the NZ Stock Exchange, Synlait has agreed that the exclusivity it has under the Nutritional Powders Manufacturing and Supply Agreement (NPMSA) for a2 Platinum and other nutritional products will cease to apply from 1 January 2025.
However, Synlait expects to continue to produce all products under the NPMSA in the short term.
Synlait will also continue to hold the Chinese regulatory State Administration for Market Regulation (SAMR) registration (currently expiring September 2027), attached to its Dunsandel facility, after settlement takes effect. The registration is for a2MC’s Chinese labelled infant formula (stages one, two and three).
Despite the exclusive supply arrangements ending, Synlait expects that a2MC’s China label products will continue to be produced at Synlait’s Dunsandel facility unless the company can obtain its own SAMR registration to manufacture those products.
As part of the settlement, a2MC will make a one-off payment of $24.75m to Synlait. That payment includes amounts that had largely been withheld in accordance with the terms of the NPMSA from payment pending resolution of matters in dispute.
Synlait chief executive Grant Watson says settling these disputes is another positive step forward in our business recovery plan.
“With the disputes behind us, we are pleased to be able to confirm to our shareholders The a2 Milk Company’s support for our upcoming equity raise. This marks genuine progress for Synlait – we are delivering on the turnaround actions needed to reset our performance and better position the company for the future.”
Synlait’s share price rose 6c to 36c/share after news of the settlement was made public.
The Good Carbon Farm has partnered with Tolaga Bay Heritage Charitable Trust to deliver its first project in Tairāwhiti Gisborne.
Education union NZEI Te Riu Roa says that while educators will support the Government’s investment in learning support, they’re likely to be disappointed that it has been paid for by defunding expert teachers.
The Government says it is sharpening its focus and support for the food and fibre industry in Budget 2025.
A European Union regulation ensuring that the products its citizens consume do not contribute to deforestation or forest degradation worldwide threatens $200m of New Zealand beef and leather exports.
A long-acting, controlled- release capsule designed to protect ewes from internal parasites during the lambing period is back on the market following a comprehensive reassessment.
Healthcare appears to be the big winner in this year's budget as agriculture and environment miss out.
OPINION: Last week's announcement of Prime Minister’s new Science and Technology Advisory Council hasn’t gone down too well in the…
OPINION: At its recent annual general meeting, Federated Farmers’ Auckland province called for New Zealand to withdraw from the Paris…