By Alice Uribe
SYDNEY–Shares of New Zealand dairy companies a2 Milk and Synlait Milk rose Tuesday morning after Chinese regulators reopened market access for a2’s infant-milk formula product.
Synlait was up 14% at 1.83 New Zealand dollars (US$1.11), while a2 Milk, a major buyer of Synlait’s output, was up 8% at NZ$6.20.
China’s State Administration for Market Regulation approving the re-registration of a2 Milk’s China-label infant-milk formula will allow it to manufacture and export the product to the Chinese market until September 2027, Synlait said Tuesday.
The move is also pivotal for the ongoing success of the manufacturing-and-supply agreement between the two companies, Synlait said.
“We are thrilled to have achieved this significant milestone, which is pivotal to the long-term success of our Advanced Nutrition business,” Synlait Chief Executive Grant Watson said .
“Our shareholders, staff, customers, and farmer suppliers all benefit from the certainty of today’s re-registration and continued China market access.”
Synlait and a2 Milk shares are down 48% and 16% so far this year.
Write to Alice Uribe at alice.uribe@wsj.com
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