Synlait Milk has formed a partnership with New Zealand-based supermarket cooperative Foodstuffs South Island, which will see Synlait become the exclusive dairy provider for the group from early 2019.
As a result of the deal, Synlait will invest NZD 125 million ($90.8 million) in a new dairy production facility, which will have a production capacity of 110 million litres annually.
The new facility will produce fresh milk and cream for domestic use, as well as long-life milk, infant formulas and extended shelf life dairy products.
Fresh milk and cream products will be sold as Value and Pams products in Foodstuff’s New World, PAK’nSAVE, Four Square and on the Spot stores.
John Menno, and managing director and CEO said: “Combined, the partnership with Foodstuffs South Island and investment in a new facility is a further and significant step towards our goal of being a more diversified and balanced business.
“We are very proud of our Canterbury dairy farmers and the way they farm. We are excited about making our farmers’ fresh milk available to everyone in the South Island, in partnership with Foodstuffs.
Regarding the new facility, Penno added: “This will be one of the most sophisticated fresh milk and cream processing facilities in New Zealand.
By leveraging what we have learnt about milk quality and blending dairy products in our infant formula business, we will deliver a great facility at Synlait Dunsandel.”
Steve Anderson CEO of Foodstuffs South Island said: “The partnership allows the cooperative to provide high-quality fresh milk and cream to our customers.
“The partnership gives us surety around milk supply with an innovative New Zealand-based food supplier.”
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