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.
Fonterra has launched a filtered fresh milk in Australia under its flagship Anchor brand, offering up to 40% longer refrigeration life, thanks to new microfiltration technology. Microfiltration reduces the naturally occurring bacteria in pasteurised milk which cause spoilage.
The ceramic filters extend the shelf life of normal pasteurised milk from 15 to 21 days. Anchor’s filtered whole milk was launched in Victoria last week. Fonterra will collect A5c from the sale of every bottle of Anchor milk and cream and give it to sustainable dairy farming initiatives via its Anchor Dairy Fund. The donation will be capped at A$250,000 a year.
