A2 Milk's move may be more about Mataura Valley Milk than Synlait

A2's Synlait move pushed both companies' share price down. (Image: Getty)

Tue, 19 Sep 2023

A2 Milk’s move to cancel its exclusive manufacturing and supply agreement with Synlait may be all about getting Mataura Valley Milk into the black.A2 Milk owns 75% of Mataura Valley Milk (MVM) in partnership with China Animal Husbandry Group, which owns 25%. It bought the Southland dairy company in 2021 for $268.5 million to provide “supply diversification”.In the year to June 30, MVM reported earnings before interest, taxes, depreciation and amortisation loss of $26.5m. That was wider than the $18.8m loss in the prior year.A2...

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