Debt-laden Synlait says farmers want out and it needs full $130m shareholder loan

Synlait chief executive Grant Watson.

Struggling dairy processor Synlait has confirmed a significant majority of its farmer suppliers want to leave.

In a market announcement to the Australian securities exchange (ASX) on Monday morning – a public holiday in New Zealand – dual-listed Synlait said the exodus of most of its farmer suppliers was expected, given its current performance.

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It also told the exchange it had given up trying to sell its Dairyworks cheese business.

Synlait said in April it valued the Dairyworks business at $120 million, writing it down by $31.1m.

The farmers’ two-year cessation notices say they intend to exit the company, which would affect Synlait in 2026, the company said.

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