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.
NZ Specialty Cheese Makers Association chair Catherine McNamara says while the EU has unlimited access to the NZ market, two-way trade is nigh impossible.
She says the cost of exporting chesse to the EU is prohibitive.
She says competing againsts subsidised European cheese together with the high cost of freight means that the price NZ would have to sell its produce for would be way above that of locally produced cheese.
McNamara, who is also the owner and managing director of award winning Grinning Gecko Cheese in Northland, says her big hope is that NZ consumers will support local cheesemakers as they try to deal with the challenges they now face.
