[20 December/The Country]

Synlait Milk says it will enter into the fresh milk market in early 2019 through becoming the exclusive supplier of private label fresh milk and cream to Foodstuffs South Island. The company will invest $125 million in a liquid dairy packaging plant and the products will be sold across the network of Foodstuffs stores. Synlait noted that the investment establishes a platform for the company to pursue a range of dairy-based products for domestic and export markets in the future, with the technical expertise coming from the company’s R&D centre in Palmerston North, which is a collaboration with Massey University and FoodPilot. The plant will have a capacity of 110 million litres and will be able to produce pasteurised products for domestic and extended shelf life opportunities, the securing of a foundation customer enables the company to de-risk the investment.