Synlait juggles high milk price risk with retaining farmer-suppliers: agri-business expert

Source: Radio New Zealand

A Synlait milk truck. Synlait/supplied

Paying dairy farmers a premium for their white gold could come at a cost to Synlait Milk, according to an agribusiness expert.

The Dunsandel-based processor and exporter increased its farmgate milk price this week to up to $9.90 per kilogram of milk solids for the financial year, 20 cents higher than competitor Fonterra’s new current season midpoint.

But it also released what bosses labelled a “frustratingly disappointing” half-year financial result, due to manufacturing challenges and inventory kerfuffles between raw and powdered milk through 2025.

It reported a $80.6 million loss in the six months to late January, while debts soared to $472.1m.

Lincoln University senior lecturer in agribusiness Dr Nic Lees said the company was under significant financial stress, which could affect farmer confidence.

“Farmers do have options. I suspect this result’s not going to add confidence amongst farmers that there isn’t a financial risk for them supplying Synlait.”

Lees said the company’s sales were no longer covering the direct cost of making and processing its products. He said paying farmers the higher milk price added to the pressure, increasing raw material costs, but he could understand the strategy.

“They need to be able to be offering their suppliers something more than what they can get from supplying Fonterra or Open Country,” he said. “They are having to pay a risk premium to their suppliers to try and hold those.”

  • Do you supply Synlait? Let us know your thoughts monique.steele@rnz.co.nz

He said Synlait faced fixed retail pricing in “onerous” customer contracts, making it more vulnerable to fluctuating global prices – which differed to how Fonterra could pass on costs.

“In some ways from Fonterra’s point of view, the higher milk price is beneficial to their farmers. Whereas from Synlait’s perspective, higher milk price means higher costs for their raw materials, which potentially is difficult to directly pass on to their customers.”

Lees said Synlait was lucky to have major long-term shareholders like Bright Dairy of China that had significant financial scale, so the losses would not threaten the overall business.

But he said the results showed the challenge of going down the “value-add pathway” into retail, like into its consumer brand Dairyworks.

It came as Fonterra divested its consumer brands business under Mainland Group, for dairy products including ice creams and cheese.

This week, Fonterra announced its net profit for the six months ended January rose 3 percent on last year to $750m.

Synlait milk on the production line. Supplied/ Synlait

Poor 2025 results don’t reflect future – company

When publishing the results to the New Zealand Exchange, Synlait Milk chief executive Richard Wyeth and chairman George Adams told investors the financial result did not define the company’s future.

“Many of you, like us, will find today’s numbers frustratingly disappointing – we are all hungry for positive financial performance,” the joint statement read.

“The result reflects a period where Synlait faced multiple headwinds with little choice as to how to deal with them.”

Synlait’s “realistic” roadmap to recovery sought to position it for future growth, grow high-margin products from existing assets and accelerate growth and future growth opportunities.

Last year, the dairy company sold its North Island operations, including its Pōkeno site, for $307m to help the balance sheet.

It said on Monday the sale was on track to be completed from 1 April.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Bluebridge ferry passengers frustrated by ongoing disruption to sailings

Source: Radio New Zealand

The Connemara has been out of service since last week. File photo RNZ / Ben Strang

Bluebridge ferry passengers are feeling deflated and frustrated by ongoing disruption to sailings, with one ferry out of action and the other running four hours behind schedule.

Sailings on Connemara have been canned for the eighth day in a row due to a technical fault, which is causing issues for its remaining service, Livia.

  • Have you been affected? Email mary.argue@rnz.co.nz

Connemara, which usually sails up to four times daily between Wellington and Picton, hasn’t been running since the fault was identified almost a week ago.

Sailings on the ship had also been cancelled for Saturday.

StraitNZ Bluebridge spokesperson, Will Dady apologised “unreservedly” for the disruption but didn’t elaborate on what the fault was, just that it was taking longer than anticipated to fix.

Maritime NZ confirmed it would undertake its own inspection of the vessel to ensure safety standards were being met, but did not provide a timeframe.

The Connemara. (File photo) RNZ / Ben Strang

On Friday, Bluebridge issued an alert on its website informing passengers Livia was running four hours behind schedule due to re-accommodating Connemara passengers.

“All affected customers will be kept up to date with email and text notifications with revised sailing and final check in times,” it said.

Grace and John, who travel from the South to the North Island for work, said it wasn’t the first time they’d been caught up in a ferry cancellation or delay.

“Not only do we have to deal with increased fuel costs to drive up the South Island to the ferry, now we have to tolerate an appalling service from an essential transport network.”

They said they were booked on Friday’s 7.15pm Livia sailing and had just been told there was a four hour delay – it would now depart after 11pm.

In their opinion, “technical issues” was an insufficient explanation for the delays and cancellations.

“The New Zealand public deserves better.”

Another passenger, who was meant to be sailing on Connemara on Friday, said he was exhausted after spending a night trying to rebook on another service.

The man, who didn’t want to be named, said he was told late on Wednesday the crossing had been cancelled.

“The car was fully loaded, the cat was in the cattery and we were about to drive up from Dunedin to Picton. I feel like if they knew about this problem on Saturday why did they give us such little notice.”

He said the trip north to visit elderly parents came after a year of hard work saving up money and annual leave and the “last-minute contact” meant there was no time to recoup costs on pre-booked accommodation.

“I stayed up all night [on Wednesday] refreshing Bluebridge’s and Interislander’s websites and managed to book the Sunday night sailing and feel lucky to do so, but still feeling pretty deflated,” he said.

Dady said the company was doing everything it could to get the Connemara up and running again as soon as possible and that from time-to-time things went wrong “with large, complex ships sailing multiple times a day”.

“We are extremely aware [of] how disruptive this is for our customers, many of whom are long term and very loyal, and we apologise unreservedly to all of them.

“We want to reassure everyone that our team of engineers are working around the clock to return the ship to service.”

Maritime New Zealand said it was StraitNZ Bluebridge’s responsibility to repair Connemara.

“StraitNZ needs to work with the ship’s Classification Society (a non-government organisation that establishes and maintains technical standards) and flag state (Bahamas), to ensure the repairs are carried out and approved to their satisfaction.”

Following this, Maritime NZ would be informed and could either accept the approved fixes or make further enquiries, a spokesperson said.

Maritime NZ had also scheduled its own inspection of Connemara to confirm the operator was meeting safety standards.

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NZ-based Canadian billionaire Jim Grenon becomes NZME’s largest shareholder

Source: Radio New Zealand

Jim Grenon’s stake now sits 0.1 percent below the threshold that would trigger a compulsory takeover offer. Supplied/RNZ: Brad White

New Zealand-based Canadian billionaire Jim Grenon has increased his shareholding in listed media company NZME, owner of the New Zealand Herald and Newstalk ZB.

A notice to the NZX shows Grenon spending just under $2 million to aquire almost 1.8 percent of NZME, making him its largest shareholder.

His total stake now stands at 19.9 percent, just below the 20 percent threshold that would trigger a compulsory takeover offer under New Zealand law.

Seperately, NZME director and former cabinet minister Steven Joyce has almost doubled his shareholding to just over 100,000 shares.

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Police yet to investigate what technology is needed gather intelligence as part of new bill

Source: Radio New Zealand

(File photo) RNZ / Richard Tindiller

Police say they have not yet started investigating what technologies they might need to implement intelligence-gathering powers contained in a new bill that would give police new powers to move and detain.

They also said public consultation on the policing amendment bill would happen at the Justice select committee where it was sent after its first reading this week.

The bill delivered new powers to police to move or detain someone, but just how far it went would now be decided in select committee.

There was no public consultation on it until now, with a regulatory impact statement saying the time pressure had been to enact the changes as soon as possible after a Supreme Court ruling almost a year ago, “given the impact on daily policing activity”.

Two official inquiries and a Supreme Court ruling almost a year ago, challenged police’s understanding of how they could collect general intelligence and, the bill said, narrowed the law.

This came after police photographing people indiscriminately was ruled unlawful, and police storage of tens of thousands of images was exposed for the first time as so haphazard they still had not been able to locate them all.

Police missed a mid-2025 deadline to find a way to identify and delete all the photos.

Their updates to the Privacy Commissioner over several years showed that while they stopped the practice, and taking youths fingerprints unlawfully too, they failed to find or afford technology to destroy the pictures, or to flag them if they cropped up in a current investigation.

The tech gap was raised in the debate over the bill’s first reading this week by Labour’s police spokesperson Ginny Andersen.

A digital evidence management system had been presented as a solution, she said.

“We have a right to know how long those photographs or video recordings or sound recordings are being held for and where they are being stored,” Andersen said.

“It’s important to know that there is a system in place within police for this to be done responsibly, and it’s also important for us to know if this is funded, because we know… there’s been inadequate funding for the development and implementation of a digital evidence management system.

“Had they had that, police would have stored and identified photos and linked them to specific cases, which would have also meant [that] staff would have documented the lawful purpose for taking the photo.”

In mid-2024 a project to build such a system was put on hold for lack of money.

RNZ would seek an update from police.

Tim Anderson, Assistant police commissioner for iwi community and partnership said on Friday, “as this bill has only just begun going through the parliamentary process, police has not yet commenced work to [sic] investigating supporting technologies that may be required in preparation for implementation.”

Police began a push for a law change around general intelligence powers in 2022 soon after being taken to task in inquiries by the Privacy Commissioner and Independent Police Conduct Authority.

The government said the new bill sought to correct that and restore their powers but critics say it expands their powers without adequate safeguards.

The lack of consultation before the bill was introduced extended to Māori.

Police said on Friday they would continue to consider and give effect to their obligations to Māori and the Treaty “including ways in which any disproportionate impacts to Māori can be appropriately mitigated”.

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Woolworths fined $33,000 over rat infestation at South Dunedin supermarket

Source: Radio New Zealand

South Dunedin Countdown temporarily closed after rats were trapped in February, 2024. RNZ / Tess Brunton

Woolworths New Zealand has been fined $33,000 for failing to properly deal with a rat infestation at its South Dunedin supermarket.

The store was closed for almost three weeks in February 2024 to eliminate the pests with more than 20 rats caught and old nests found in the walls.

The company pleaded guilty in December last year to breaching the Food Act after a lengthy investigation by the Ministry for Primary Industries.

Judge David Robinson imposed the fine in the Dunedin District Court on Friday.

Woolworths’ failure to act quickly had the potential to expose customers and staff to illness over about four months, Robinson said.

The company failed to escalate the issue to its food safety team with staff treating the infestation as a maintenance issue instead of a food safety matter until a rat chewed through the wires of a forklift, he said.

The company had a pest management plan in place with more than 110 rat sightings in the company’s register between October and December with 10 caught during a similar period, Robinson said.

There was a lack of understanding among staff about who should escalate the issue and he said the company was responsible for ensuring its staff knew what to do.

Woolworths’ lawyer Joe Edwards acknowledged the company made an error in not escalating the problem earlier and accepted there were systemic issues, saying it was not seeking to pass the blame onto staff.

The company apologised and had taken steps to analyse its policies and procedures to reach a “gold standard” for preventing and responding to future pest problems, he said.

Rats were first detected in the Andersons Bay Road store in late 2023 and a photo of a rat perched among bacon products went viral in November that year.

One customer told RNZ she saw a huge rat “living its best life in there”, running through the wine bottles while she was shopping with her children.

Ministry for Primary Industries confirmed an investigation was launched in January 2024 after receiving complaints.

Woolworths New Zealand responded saying it had a comprehensive pest management plan in place and was ramping up cleaning procedures, adding more bait stations and getting daily visits from a pest control contractor.

The company confirmed it would close the store for 48 hours the following month so pest controllers could tackle the furry problem. Woolworths claimed it was told rodents were not nesting in the store.

Pest controllers caught 13 rats over the weekend and the closure was extended with reopening subsequently pushed back several times.

New Zealand Food Safety then confirmed Woolworths had uncovered evidence of rats nesting.

The store finally reopened 19 days later after no rat activity was found for 72 hours. But there were mixed reviews from customers with some planning to stay away and others happy to keep shopping there.

Two more rats were found at the supermarket by April 2024 but New Zealand Food Safety said it was satisfied Woolworths was focused on pest management.

The food safety regulator charged Woolworths New Zealand for breaches of the Food Act last September and the company pleaded guilty in December.

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Ten tarāpuka / black-billed gulls poisoned in Te Anau

Source: Radio New Zealand

The Department of Conservation is investigating the poisoning of ten black-billed gulls in Te Anau. Supplied / Department of Conservation

The Department of Conservation is investigating the poisoning of 10 black-billed gulls in Te Anau.

Five of the native birds were found sick on the foreshore in January and were euthanised. Another five had already died.

Department of Conservation Te Anau operations manager John Lucas said testing later revealed the black-billed gulls/tarāpuka had ingested alphachloralose, a toxic chemical used for bird control.

The department was appealing to members of the public and local businesses for information about the use of alphachloralose, or products containing the chemical, in the Te Anau area in mid-January.

The deaths were a disappointing blow for the Te Anau population of an often unfairly maligned species, Lucas said.

“Tarāpuka are New Zealand’s only endemic gull and their numbers are in rapid decline, especially in Southland,” he said.

“People may be used to seeing colonies ranging in the hundreds and thousands but with introduced predators, habitat loss and changes in land use these avian fixtures of the south are in serious trouble with some studies estimating up to 80 percent decline in Southland over the past 30 years.”

Black-billed gulls were a protected species under the Wildlife Act and it was an offence to hunt, kill or catch them without authorisation, he said.

“Like kiwi and kākā, tarāpuka are only found in New Zealand and are part of what makes New Zealand special. If you saw or heard anything while out naturing on the Te Anau waterfront this summer that may help us get to the bottom of this please get in touch,” Lucas said.

People could report any information to 0800 DOC HOT, using the case reference CLE-11463. Information could be offered anonymously.

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Heinz Wattie’s to proceed with closing factories, discontinuing some products

Source: Radio New Zealand

It will see frozen vegetables be discontinued. (File photo) Supplied / Heinz Watties

Heinz Wattie’s will proceed with plans to close manufacturing sites in Christchurch, Dunedin and Auckland, as well as the frozen packing lines in Hastings.

This would see a discontinuation of its frozen vegetables, coffee and dips businesses.

MORE TO COME…

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Households closing their wallets as consumer confidence falls

Source: Radio New Zealand

RNZ

  • Consumer Confidence falls to 91.3 points from 100.1 in February
  • A net negative 14 percent of households think it is a good time to make a major purchase
  • A net 10 percent expect to be better off this time next year, down from last month’s net 20 percent
  • A net negative 20 percent of consumers fell worse off now, down from last months minus 16 percent
  • Consumers believe inflation will rise to 5.7 percent in the next two years

The Middle East conflict has torpedoed consumer confidence in March, and early evidence suggests households are closing their wallets.

March’s ANZ-Roy Morgan Consumer Confidence index fell sharply into negative territory at 91.3 points, well below last month’s 101.1 points.

Any score under 100 indicates pessimism.

The impact of the Middle Eastern conflict on consumers was immediate, with every metric in the latest survey turning negative.

ANZ said the conflict created significant uncertainty for the economic outlook and was already hitting people in the back pocket.

It said the hit to confidence would likely be negative for growth and it was reasonable to believe that both firms and households would think twice about making making spending decisions, in case things went from bad to worse.

Consumers were caught in a perfect storm in March, hit by higher fuel prices and rising mortgage rates.

Chief economist Sharon Zollner said the data was even worse in real time than the headline suggested.

“It’s not the full story because we can actually look at it as the month evolved, and in the last week of sampling it was (consumer confidence) under 80,” she said.

Zollner said the same pattern had repeated across the Tasman where Australian consumer confidence had “dropped like a stone”.

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Synlait juggles high milk price risk with retaining farmer-suppliers

Source: Radio New Zealand

A Synlait milk truck. Synlait/supplied

Paying dairy farmers a premium for their white gold could come at a cost to Synlait Milk, according to an agribusiness expert.

The Dunsandel-based processor and exporter increased its farmgate milk price this week to up to $9.90 per kilogram of milk solids for the financial year, 20 cents higher than competitor Fonterra’s new current season midpoint.

But it also released what bosses labelled a “frustratingly disappointing” half-year financial result, due to manufacturing challenges and inventory kerfuffles between raw and powdered milk through 2025.

It reported a $80.6 million loss in the six months to late January, while debts soared to $472.1m.

Lincoln University senior lecturer in agribusiness Dr Nic Lees said the company was under significant financial stress, which could affect farmer confidence.

“Farmers do have options. I suspect this result’s not going to add confidence amongst farmers that there isn’t a financial risk for them supplying Synlait.”

Lees said the company’s sales were no longer covering the direct cost of making and processing its products. He said paying farmers the higher milk price added to the pressure, increasing raw material costs, but he could understand the strategy.

“They need to be able to be offering their suppliers something more than what they can get from supplying Fonterra or Open Country,” he said. “They are having to pay a risk premium to their suppliers to try and hold those.”

  • Do you supply Synlait? Let us know your thoughts monique.steele@rnz.co.nz

He said Synlait faced fixed retail pricing in “onerous” customer contracts, making it more vulnerable to fluctuating global prices – which differed to how Fonterra could pass on costs.

“In some ways from Fonterra’s point of view, the higher milk price is beneficial to their farmers. Whereas from Synlait’s perspective, higher milk price means higher costs for their raw materials, which potentially is difficult to directly pass on to their customers.”

Lees said Synlait was lucky to have major long-term shareholders like Bright Dairy of China that had significant financial scale, so the losses would not threaten the overall business.

But he said the results showed the challenge of going down the “value-add pathway” into retail, like into its consumer brand Dairyworks.

It came as Fonterra divested its consumer brands business under Mainland Group, for dairy products including ice creams and cheese.

This week, Fonterra announced its net profit for the six months ended January rose 3 percent on last year to $750m.

Synlait milk on the production line. Supplied/ Synlait

Poor 2025 results don’t reflect future – company

When publishing the results to the New Zealand Exchange, Synlait Milk chief executive Richard Wyeth and chairman George Adams told investors the financial result did not define the company’s future.

“Many of you, like us, will find today’s numbers frustratingly disappointing – we are all hungry for positive financial performance,” the joint statement read.

“The result reflects a period where Synlait faced multiple headwinds with little choice as to how to deal with them.”

Synlait’s “realistic” roadmap to recovery sought to position it for future growth, grow high-margin products from existing assets and accelerate growth and future growth opportunities.

Last year, the dairy company sold its North Island operations, including its Pōkeno site, for $307m to help the balance sheet.

It said on Monday the sale was on track to be completed from 1 April.

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The ‘McDonald’s hamburger’ of cricket bats that could hit high prices for six

Source: Radio New Zealand

123rf

George Fox didn’t set out to be a bat manufacturer – his expertise is making protective equipment for cricketers. Although even that began more by accident than design around 13 years ago.

A friend was a professional cricketer, and Fox wasn’t impressed by the standard of some of his protective gear and made a bet he could do a better job.

“I said, ‘I bet you a pint. Your thigh pad’s rubbish mate, let’s have a go.'”

It’s safe to say Fox won the bet. Through word of mouth his bespoke thighpads and protective equipment grew into a business under the Stretton Fox brand name.

Based in the English town of Market Harborough, Fox got to know bat makers and heard their complaints about the rising cost of raw materials – namely English willow.

The MCC, cricket’s law makers, even held a conference last year to address the rising costs of bats and willow.

Part of the reason is limited supply – aside from the cane handle, quality cricket bats are virtually all made from English willow. It’s light, flexible, and when prepared by a skilled batmaker acts almost like a mini trampoline, sending the ball flying to and over the boundary.

But as the name suggests, English willow grows best in England and takes upwards of 15 years to be ready for harvest. The tree is felled, cut into rounds which are then split into clefts, which are then shaped into bats.

When he found out less than half of the wood actually makes it into the finished bat, Fox started thinking, “How do you create a McDonald’s hamburger version of a cricket bat?”

The secret formula

Using his training as a material scientist, he’s worked out a method to turn the willow leftovers – including shavings and saw dust – into what he describes as a “willow porridge”. That mixture is then poured into a cricket bat-shaped mould.

“Within 10 to 15 minutes you’re pulling out a cricket bat,” Fox said.

The bat needs a week or two to fully harden, but is then ready for match play.

Fox calls his bats ‘ Re-Willow’. The exact method is a patented secret. Fox said up to 95 percent of the bat is made from willow and wood-derived resin.

“Then about 5 percent of it is very clever chemistry, which is the bit that makes it do what it does. So that’s my Coca-Cola recipe, if you like.”

Because the blade of the bat is made from wood, it complies with MCC laws. It’s still a work in progress though.

Cricket bat willow is graded mainly on looks, but also performance. Fox reckons his bats currently perform as well as grade three English willow.

“The grading’s tricky, but everyone kind of gets it in terms of the bounce and the ping. I reckon that within six to eight weeks, we’ll be at grade two/grade one.”

Currently a top-of-the-range bat can cost well over $1500. Fox says his ‘Re-Willow’ bats will retail for around $200 for an adult size.

Fox doesn’t see his bats as a replacement for English willow bats, but hopes they’ll help lessen the cost barrier of getting into the sport, particularly for kids.

Fox said he’s been contacted by cricket academies around the world who tell him, “We just can’t, for love nor money, get hold of good quality cricket bats.”

If everything goes to plan, Fox’s Re-Willow bats will be on the shelves before the end of the year.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand