The a2 Milk Co’s main supplier Synlait faces financial crisis
Infant formula company, The a2 Milk Company’s key supplier, Synlait, is in urgent need of a financial rescue package from a Chinese shareholder. The company has been forced to borrow $NZ130 million to address its worsening financial situation.
Additionally, Synlait has decided to halt the sale of its New Zealand Dairyworks cheese business due to unsatisfactory offers. It has also issued a warning that its profits are expected to be at the lower end of the projected range. Furthermore, the company is facing a potential loss of farmer suppliers.
The current financial challenges faced by Synlait are causing concerns in the agriculture and food industries. The company’s reliance on a Chinese shareholder for financial assistance highlights the impact of global market dynamics on New Zealand’s dairy sector.