The new agreement is part a2 Milk’s global supply strategy. Credit: Synlait Ltd.

Australian dairy-based nutrition company the a2 Milk has extended its supply agreement with New Zealand-based dairy company Synlait Milk.

The agreement, first signed in 2016, is for the supply of a2 Platinum infant formula, as well as other nutritional products and forms part of a2 Milk’s global supply strategy.

As part of this initiative, a2 Milk has made several changes to its manufacturing and supply arrangements with Synlait Milk.

In July last year, a2 Milk and Synlait Milk entered into an agreement, whereby the company agreed to provide a2 Platinum and other nutritional products for a minimum term of five years, with a rolling three-year term from 1 August 2020.

Some of the implemented changes in the agreement include a two-year extension to the term agreement, providing for a minimum term to 31 July 2025.

Under the agreement, the company will also increase the production volumes of the products Synlait already has exclusive supply rights.

Synlait Milk CEO Leon Clement said: “Our long-term partnership is a key part of what has made Synlait and The a2 Milk Company successful. Infant nutrition is a core focus for both companies as we continue to invest in our future; building capacity and capability to support our respective growth stories.

“We are pleased to be able to update the market on an extension to our supply agreement.”