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.
For over 60 years, dairy co-operatives have been one of the biggest employers in central Hamilton. Locals may remember ‘gumboot castle’ for instance – the old NZ Dairy Group building in the CBD.
Fonterra said it was committed to retaining an office in the Waikato, but it was looking all over – not just in Hamilton.
The Hamilton Business Association desperately hopes the co-op and its 400 staff stay in town; after all, the city was built on agri-businesses like Fonterra and it’s predecessors.
But Fonterra is seeing an increase in employees opting to ‘work from home’. This means that a large site like the eight-storey building on London St is no longer fit for purpose.
