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.
He claims the listed company faces a deeper issues of "control, confidenced and complexity".
His comments come as Synlait starts the search for its fourth chief executive in five years.
Synlait Continues Search for Stability
Richard Wyeth resigned as CEO this month after just one year in the role and will stay with the company until June 30 to support an orderly transition and handover.
Synlait has been struggling to improve its financial performance since Covid impacted infant formula sales, particularly in China.
Leon Clements resigned as CEO in April 2021 after three years in the role.
In October 2024, Grant Watson resigned after nearly three years in the role.
Wyeth, a former CEO at Miraka, was also head of Westland Milk until he stepped down early last year.
Shareholder and Customer Pressures Create Difficult Environment
Synlait's ownership has evolved over the years, and two relationships now define Synlait's future: a2 Milk as a major customer and shareholder, and Bright Dairy as the controlling shareholder.
Lees agrees and adds that Wyeth's resignation shows that Synlait's problem is bigger than who sits in the CEO chair.
"Synlait sits between two powerful forces: a2 Milk, its major customer and shareholder, and Bright Dairy, its controlling shareholder and financial backer.
"That makes the CEO role unusually hard. The company must restore manufacturing reliability, rebuild quality confidence, meet a2's infant formula supply needs, protect Bright's investment, reassure farmers and repair profitability - all at once."
Lees points out that for Bright Dairy, Synlait is more than a financial investment.
"It is a major overseas acquisition and a test of its ability to own and govern a profitable international business," he says.
"For a2, Synlait is about supply, quality and trust. The recent US recall of Synlait manufactured a2 Platinum infant formula is a reminder that, in infant formula, there is little room for error."
He says Wyeth may not have been the wrong leader, rather he may have been in an almost impossible role.
"Synlait's leadership churn is not just a CEO problem. It is a sign of a company trying to rebuild profitability while meeting the needs of a powerful customer and a controlling shareholder."
Synlait Appoints Interim Leadership
In a filing with NZX, Synlait thanked Wyeth for making a strong contribution to the business since his appointment.
He led Synlait "through a particularly challenging period with a clear focus on addressing key operational, quality and financial issues, rebuilding customer relationships, and positioning the company for its next phase".
Synlait director Leon Fung has been named acting chief executive.
The company says Fung is "ordinarily resident" in New Zealand and joined Synlait as a director in June 2024, serving as chair of its People, Environment and Governance Committee from November 2025.
It says Fung developed a strong understanding of the company's operations and challenges, which positions him well to lead the business forward.
