Better days ahead for Synlait farmers
Synlait farmer suppliers are relieved to see the troubled milk processor on the road to recovery.
Synlait Milk has dual listed on the Australian Securities Exchange (ASX) and started trading on Friday.
“Interest in Synlait from Australian investors has grown in the past few years – 72% of our institutional shareholding is based in Australia,” says John Penno, managing director and chief executive.
“Being dual listed on the NZX and ASX increases access for institutional investors in Australia, and opens up the company to Australian retail investors too.”
Synlait expects this dual listing will provide increased liquidity, as well as a broader and diversified shareholder base.
“We’ve launched our next growth phase - a three year, $300 million capital expansion programme - and will continue to pursue profitable opportunities to make more from milk. I’m pleased NZX and ASX investors both have the opportunity to be a part of our journey.”
Synlait’s growth was recently underpinned by the successful $98 million pro-rata rights issue, which closed in October 2016.
Synlait has listed on ASX as a foreign exempt issuer under a compliance listing, which will not see any capital raised as a part of the process.
In the financial year ending July 31, 2016 (FY16), Synlait reported a record net profit after tax (NPAT) of $34.4 million ($10.6 million in FY15).
Located in New Zealand’s South Island, Synlait employs more than 430 staff and their Dunsandel site in Canterbury received 658 million litres of milk in FY16.
Six industry organisations, including DairyNZ and the Dairy Companies Association (DCANZ) have signed an agreement with the Ministry for Primary Industries (MPI) to prepare the country for a potential foot and mouth outbreak.
The 2026 Red Dairy Cow conference will be hosted by New Zealand in March.
While global dairy commodity prices continue to climb in most key exporting countries, the second half of the year is expected to bring increased downside risks.
In a surprise move, Federated Farmers meat and wool group has dumped its chair Toby Williams.
Former MP and Southland farmer Eric Roy has received the Outstanding Contribution to New Zealand’s Primary Industries Award.
OPINION: Good times are coming back for the primary industries. From sentiment expressed at Fieldays to the latest rural confidence survey results, all indicate farmer confidence at a near-record high.
OPINION: It's official, Fieldays 2025 clocked 110,000 visitors over the four days.
OPINION: The Federated Farmers rural advocacy hub at Fieldays has been touted as a great success.