Canterbury milk exporter Synlait has taken on 28 extra milk suppliers for its growing nutritional business next season at a time when dairy experts are predicting continued low commodity prices from an over-supplied world market.
The line-up will expand to 201 milk suppliers in spite of the dairy downturn as the listed company sources more milk for a nutritional product range including a2 Platinum and Grass Fed infant formula brands and to feed its new large spray dryer, D3, completed last September.
Managing director and chief executive John Penno said the company was in a position to take on more suppliers because of increased customer demand for nutritional products and to provide more milk for the new large scale spray dryer.
Synlait Milk [NZX: SML], the South Island-based milk processor, expects to pay its farmer suppliers 5.9 percent more for the upcoming season than larger rival Fonterra Cooperative Group [NZX: FSF].
You don't pay more or enroll more if you are selling for less! Synlait is able to get better returns on their output due to the products they are processing, i.e. A.2.
A2M Price at posting:
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