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.
Add that to a drop in milk production due to extreme weather this year and the co-op is facing a dilemma of overcapacity. Processing 20% of Australia’s total milk, the co-op suddenly finds itself with more stainless steel than it needs.
Rumours are rife that Fonterra will close one or more of its processing plants there.
Fonterra will announce its annual result on September 12. Watch this space.
