Synlait shares take a hammering
Troubled milk processor Synlait's share price is taking a hammering as nervous investors offload their stakes.
Chief executive Grant Watson says its initial focus will be on functional UHT cream sold to B2B customers who use it in finished products for out-of-home consumption at bakeries, cafes, and beverage chains.
He says butter and cream cheese are potential long-term opportunities and China’s cream market represents significant potential for Synlait.
“The total cream market exceeded 250,000 MT in 2022, and New Zealand is the leading country for cream exports, with 58% market share,” he says.
This year Synlait is launching Joyhana UHT Whipping Cream in China.
“We will keep expanding Joyhana within China, focusing on bakery/pastry and beverage chains, and access selected Southeast Asia markets in the second half of this financial year,” he says.
Commercial sales of Joyhana commenced in FY 23, and volumes will continue to ramp into FY 24. Market feedback is positive, Watson says.
