Synlait Milk Races to Retain Suppliers Amid Profit Turnaround

Synlait Milk Limited (NZX: SML) is making an urgent push to retain its milk suppliers. The company has asked farmers to rescind their cease notices by March 31, offering new premium incentives to encourage continued cooperation. Following a challenging year marked by financial instability, Synlait has returned to profitability and is focused on securing long-term supplier relationships.

The company has intensified engagement efforts, holding meetings with farmers and attending the South Island Agricultural Field Days. Synlait is actively negotiating with suppliers to finalize agreements before the deadline, underscoring the importance of retaining suppliers to maintain stable milk production.

After relying on financial support from major shareholders to navigate liquidity issues, Synlait now aims for long-term sustainability. Industry stakeholders and investors are keeping a close watch on the ongoing negotiations to assess the company's recovery progress.