The All Ordinaries Index (ASX: XAO) is down 1.6% today, but don't blame this surging ASX All Ords share.

The outperforming company in question is New Zealand-based dairy processing company Synlait Milk Ltd (ASX: SM1).

Synlait Milk shares closed yesterday trading for 66.5 cents. In earlier trade, shares leapt to 74.5 cents, up 12.0%. After some likely profit-taking, shares are trading for 71.5 cents apiece at the time of writing, up 7.5%.

Here's why Synlait Milk is shaking off today's broader Trump tariff-fuelled market sell-off.

ASX All Ords share leaps on supply update

The Synlait Milk share price is charging higher today after the ASX All Ords share announced material progress in its strategic workstream to secure its future milk supply.

Synlait said that the "significant majority" of the cease notices it was previously issued have now been withdrawn.

Cease notices occur when a dairy farmer indicates their intent to end a milk supply agreement with a processing company like Synlait. And investors have been concerned that the company's milk supplies could run short.

"In the days after we presented our half year result there was a positive uplift in cease withdrawal numbers," acting CEO Tim Carter said.

"Our farmers are the backbone of Synlait, their support provides us with valuable certainty and reflects growing confidence in the company on the back of our return to profitability," he added.

As for those dairy farmers who still have outstanding cease notices, Synlait said they can still qualify for a "one-off additional $0.20c/kgMS premium" if they withdraw those ceases by 31 May.

Looking to what's ahead for the ASX All Ords share and likely stoking investor interest today, Carter said, "The huge progress our Milk Supply Team has already made, along with a higher than-expected level of inquiries from new farmers wanting to supply Synlait, means we have sufficient milk volumes for FY 2026 and FY 2027."

Carter added:

With competition for milk growing in Canterbury, Synlait is committed to continuing to show farmers why we should remain a processor of choice. In the meantime, we are extending a heartfelt thank you to all of our farmers for the support and certainty they have delivered to our company.

When did Synlait Milk return to profitability?

Synlait Milk returned to profitable operations in the half year ending 31 January.

The ASX All Ords share reported a 16% year-on-year increase in revenue to NZ$916.8 million. And net profit after tax (NPAT) came in at $4.8 million, up 105%.

Synlait Milk shares are up 80% in 2025.