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.
"Infant milk producers have today been told that only formula produced under China's new regulations which came into effect on May 1 will be allowed into the country.
"Primary Industries Minister Nathan Guy previously told producers that all products made before May 1 could continue to be exported regardless of the manufacturer's registration status.
"Unfortunately only six of New Zealand's 13 infant formula manufacturers gained approved in the first round of registrations.
"Now the products of seven companies face being stuck on wharves in China. This follows the same thing happening to meat exports last year.
"This is another direct failure of Nathan Guy and the Ministry for Primary Industries.
"The issues surrounding infant formula need strong and focused advocacy in China. The Ministry must ensure the number of its China-based officials keep pace with the growing demand for New Zealand products.
"John Key and other ministers have been regular visitors to China but the results of their efforts are at best selective.
"The dairy industry needs a Government which is prepared to advocate and lead when necessary," Damien O'Connor says.
