Synlait chairperson resigns after exclusive deal falls down

Synlait chairperson and director Simon Robertson has resigned, after an exclusive supply deal with A2 Milk was cancelled.

Independent director Paul McGilvary would be acting chair until the position was permanently filled, the company said in a statement to the New Zealand Stock Exchange on Tuesday morning.

“On behalf of the Board, I would like to thank Simon for his contribution to Synlait,” McGilvary said.

Last month, A2 milk cancelled Synlait’s exclusive supply rights for stages one to three infant formula, saying the company’s delivery levels fell below the required standard.

Synlait and speciality dairy company A2 Milk announced last week they were heading to binding arbitration, over Synlait’s cancelled supply agreement.

Synlait has disputed that A2 has the right to cancel the exclusivity arrangement and emphasized any cancellation only applied to exclusivity arrangements with A2 Milk. The company will continue to make infant formula for A2, under its three-year rolling-term contract.