Synlait and Bright Dairy have agreed a new five year supply agreement for packaged infant formula.
Source: Farmers Weekly
The agreement provides certainty around production volumes for both parties and builds on previous supply arrangements that have been in place since 2011.
It targets a ourfold increase from current volumes over the five-year term.
“This new agreement is a positive step in our long standing partnership and we’re looking forward to playing a key role in the future success of Bright Dairy’s infant formula business,” Sylait managing director and chief executive John Penno said.
The Pure Canterbury range of infant formula is Bright Dairy’s flagship infant nutrition brand and was launched in 2011. It is sold throughout China in both online and traditional channels.
This agreement will underpin Synlait’s application to register Pure Canterbury with the China Food and Drug Administration (CFDA).
Overall, the agreement targets a fourfold increase from current volumes over the five-year term.
“We are fortunate to have one of our largest and earliest infant formula customers as a major shareholder. This shareholder dynamic is something we share with a number of our customers and it fosters a close relationship that focuses on the medium to long term success for everyone involved,” Penno said.
Other infant nutrition customers with a strategic shareholding in Synlait Milk include The a2 Milk Company and Munchkin Inc.