The a2 Milk Company has entered into mediation with Synlait over the cancellation of its exclusive manufacturing and supply rights agreement. a2 Milk announced in September it would end the arrangement with Synlait covering infant formula. At the time, a2 Milk said Synlait’s delivery and performance during 2023 has fallen below the level required for the exclusive manufacturing and supply rights. Synlait disputed this and a2 and Synlait entered into a 20-business day period of good faith negotiations. In an announcement to the stock exchange, a2 Milk says those negotiations have not resolved the dispute and the matter will now be submitted to confidential binding arbitration under the manufacturing and supply agreement.