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Synlait Milk Limited (NZX: SML) is urging farmers to withdraw cease notices by March 31 to secure continued milk supply.
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The company has ramped up farmer engagement through meetings and a strong presence at the South Island Agricultural Field Days.
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After a tough year, Synlait has returned to profitability and is focused on rebuilding supplier relationships for long-term stability.
Urgent Efforts to Secure Milk Supply
Synlait Milk Limited (NZX: SML) is making a last-minute push to retain its milk suppliers as it works to stabilize operations after returning to profitability. The dairy processor is urging farmers to withdraw their cease notices before the March 31 deadline, offering new premium incentives to encourage continued supply.
Engagement with Farmers Intensifies
With time running out, Synlait has intensified its outreach, holding farmer meetings this week and establishing a strong presence at the South Island Agricultural Field Days in Kirwee, near Christchurch. The company is working to rebuild trust after a challenging year, during which it faced significant financial struggles.
Rebuilding After a Difficult Year
The past year has been tough for Synlait, which had to rely on financial support from its two largest shareholders to navigate liquidity issues. However, with a return to profitability, the company is positioning itself for long-term sustainability.
What’s Next for Synlait?
At the time of writing, Synlait is actively negotiating with suppliers, aiming to finalize agreements before the deadline. Retaining farmers is crucial to securing stable milk production, which will be key to maintaining its recovery momentum. Investors and industry stakeholders will be closely monitoring how many suppliers choose to stay with Synlait in the coming days.
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