Synlait to supply fresh milk and cream to Foodstuffs South Island in New Zealand

New Zealand-based dairy processing company Synlait Milk has partnered with Foodstuffs South Island to become exclusive supplier of its private label fresh milk and cream from early 2019.

To ensure consistent supply of milk products, Synlait is planning to build an advanced liquid dairy packaging facility with an investment of nearly NZD125m ($87.3m).

The dairy company anticipates that its new facility will allow them to pursue a wide range of dairy based products for domestic and export markets in the future.

Synlait managing director and CEO John Penno 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 believe this opens up new category everyday dairy, and has the potential to both leverage our current position and explore new customers and markets.

“This category represents the dairy products people consume every day. Our long-term success in this category will be based on our ability to win customers in the New Zealand market first and today we’re taking a foundational step towards that.”

Synlait’s new facility will produce pasteurised milk and cream for domestic use, extend the shelf life of dairy products, and offer ready-to-drink (RTD) liquid infant formula and toddler’s milk.

In addition, Synlait’s research and development (R&D) centre in Palmerston North will provide the technical new product development (NPD) expertise.

Foodstuffs South Island CEO Steve Anderson said: “The partnership allows the cooperative to provide high-quality fresh milk and cream to our customers. The partnership allows us to give our customers surety around milk supply with an innovative New Zealand-based milk supplier.

“In time, we are looking forward to collaborating with Synlait to create a range of new and innovative dairy-based products that our customers will enjoy.”