Synlait’s baby food product hits China

Synlait Milk chief executive John Penno says it marks the company's transition to one of New Zealand's leading infant nutritional producers.

"Getting our first finished product into the premium category in China is a clear demonstration of our ability to deliver on our plans," he says.

"Discerning customers are willing to pay a premium for safe, nutritious food that they trust, which creates real value for our farmers, shareholders and New Zealand if done well. We see this as an important next step and remain very ambitious about the formulated milk products business."

Synlait, is 51% owned by Bright Foods, China's third largest dairy company by volume.

Synlait Milk is manufacturing infant formula products for a range of customers, the first of which will be announced at the November 22 opening of its new plant.

China is the most important market for Synlait Milk. But Penno expects that by mid-2012 it will have established its infant formula business and be working with more than 10 customers in five countries.

"We are actively seeking new customers as well as building on the relationships we have established. Feedback from staff who attended the world's largest food and beverages tradeshow in Germany last month is that demand for milk products is soaring and Synlait Milk is in a great position to help supply that demand."

Synlait's product range includes infant and adult nutritional formulations, functional food ingredients and specialised milk powder products.

Penno says the best in-class approach to the development of the $100 million state-of-the-art infant nutritional facility near Dunsandel this year has meant international customers have sat up and taken notice.

The Synlait plant, which the company says is the largest and most sophisticated in the Southern Hemisphere, was commissioned on time in September despite challenges from earthquakes impacting on the Canterbury region. Trade Minister Tim Groser, will open the new infant nutritional facility. Synlait customers from Asia, Europe, Australia and the Middle East, as well as government officials, and farmer suppliers, will all attend.

The company will also launch its new corporate brand at the event. Penno says it is an important step in achieving Synlait Milk's strategy of becoming the trusted supplier of choice for the world's best health and nutrition products.

"Repositioning the Synlait brand to support the transition of the company into the global nutrition market, and our new capability, is important for our future success."