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.
The latter’s credibility has been called into question after he claimed the sheep being shipped live to Mexico would “quickly be killed and end up on the barbeque at village festivals”. As agent Peter Walsh curtly pointed out, with these sheep being landed in Mexico at around US$360 a head “that makes it a very expensive lamb chop for financially struggling Mexicans”. The Hound suggests Woodford better stick to producing dour and unreadable columns about Fonterra, because his understanding of the economics and spending power of Mexican peasants is way off beam!
