Friday, July 8, 2022

My Daily Digest: March 30, 2021

Synlait hopes to break even in covid-hit market Synlait’s second-half downgrade shows just how reliant it and its customer a2 Milk are on the daigou channel for its sales into China.

After predicting a $75 million profit for this financial year at its outset, Synlait now expects to break even and is looking to keep costs under control to weather the headwinds.

The lack of international travel has hit sales of a2 Milk pretty hard and the other channels to market haven’t picked up any slack.

High farm gate milk prices are also having a negative effect on the balance sheet.

Back in January market analysts opined that the daigou trade was a great option for emerging businesses, but a mature outfit should perhaps be looking for a more direct path to consumers.

Synlait’s at the tail end of its investment phase, has an excellent sustainability model for its farmers and a great product.

Its leadership is confident it’ll emerge from this covid-induced coma better than ever.

It’ll need to, for its farmers and its shareholders.

 

Bryan Gibson

 

Synlait ponders lack of profit

Synlait may not make a profit this financial year because of sharply reduced orders from a2 Milk Company for packaged infant formula, rising dairy commodity prices and global shipping delays.

 

 

500 migrant staff needed to fill labour gap

Federated Farmers and DairyNZ are requesting the Government allow 500 migrant dairy staff into New Zealand to avoid a worker shortage in the new milking season.

 

DairyNZ forums focus on sustaining dairy’s success

Insights into practical solutions to help farmers sustain success on-farm is a key focus of this year’s DairyNZ Farmers’ Forum.

 

Canal blockage delays NZ cargo

NZ apples are among the cargo on board vessels caught up by six days of delays in the Suez Canal blockage.

 

 

FARMSTRONG: A change for the better

A motocross accident left dairy farmer Gary Sunshine-Tervit barely able to work and badly depressed. Now, he’s Otago-Southland’s Dairy Farm Manager of the Year. Here’s how he got through “dark times” and bounced back.

 

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