Synlait Milk is warning of a potential net loss in its half year results. 

The independent milk processor is projecting a 17-to-21-million-dollar loss for the six months to June, down from a net profit of $4.8 million from the same period last year. 

It's putting the loss down to rising interest rates and operational costs and lower margins 

Ashburton-based Synlait supplier Willy Leferink told Mike Hosking that it's not a short-term problem, as its share price is also dropping. 

He says it's a fundamental problem and they'll have to re-capitalise, but at 68 cents a year, that's hard work. 

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