Scale does not drive profit, John Penno, current Synlait director and co-founder, said at Dairy Day in Punchestown on Tuesday.

Over 25% of New Zealand’s dairy farmers are unprofitable despite the fact herd average size is now 400 cows, he said. Rising debt levels, increasing cost of production and lack of further expansion possibilities will limit any further growth in the New Zealand milk pool, according to Penno.