Synlait chair Simon Robertson steps down

The news: New Zealand dairy producer Synlait Milk has announced that its chair Simon Robertson has resigned from the board with immediate effect.

The numbers: Robertson was appointed to the Synlait board in November 2020 and elected as chair in December 2022. The company said independent director Paul McGilvary would act as the new chair until a search to fill the role is completed. The dual-listed Synlait’s shares have lost more than 60% of their value so far in 2023.

The context: Synlait did not provide any reason for the resignation. It comes just days after Synlait and rival dairy producer A2 Milk proceeded to arbitration to resolve a dispute over the latter cancelling Synlait’s long-running exclusive supply rights for infant milk formula products sold in China, Australia and New Zealand. Synlait has continued to dispute a2 Milk’s authority to cancel the supply rights. The two companies have held a manufacturing and supply arrangement for more than a decade, with A2 also holding a nearly 20% stake in Synlait. Both have seen sales drop amid regulatory uncertainty and weaker sales in China, the world’s biggest infant formula market.