Despite the recapitalization, analysts warn the company remains under pressure, with significant debt obligations and ongoing operational challenges. Issues such as the underperforming Pōkeno plant and adverse foreign exchange impacts have weighed heavily on profitability, while excess industry capacity has complicated efforts to increase processing volumes.

Strategically, Synlait is shifting focus away from traditional milk processing at Pōkeno toward advanced nutrition products, although expected volumes in this segment have yet to materialize. At the same time, its long-standing relationship with a2 Milk is evolving, with exclusivity agreements ending and volumes expected to decline as a2 diversifies its manufacturing base.

For a2 Milk, the partnership remains important, particularly for maintaining Chinese regulatory access through Synlait’s Dunsandel facility. However, the company is actively pursuing greater control over its supply chain, including potential investments in its own processing capacity to support a broader product portfolio and expand in key markets like China.