Synlait Milk has reported an annual loss of $4.3 million, following a difficult few months for the industry.

The Canterbury-based milk processor reportedly earned $38.5 million the previous year.

Chief executive Grant Watson aims to turn the company's profit around by diversifying growth strategies and reducing internal costs.

"There's a huge amount of effort going on throughout the business to strengthen Synlait up and have it return back to being a very profitable business again."

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