Canterbury Milk processor Synlait has suffered a 76% drop in half-year net profit as it battles Covid-related volatility and rising dairy prices.
The majority Chinese-owned processor has been forced to withdraw its full-year 2021 performance guidance because of significant uncertainty and volatility within its business.
It says the move was prompted by problems with its major customer, a2 Milk Company, which is reeling from a slump in sales of infant formula to China.
Add to that shipping delays and lower infant formula production, and Synlait finds itself in unchartered waters.
The company will announce its half-year results this month.