Synlait Milk to upgrade infant formula facility in New Zealand

New Zealand-based dairy company Synlait Milk has announced that it is investing NZD15m ($12.6m) to upgrade its Special Milks Drier at Dunsandel, South Island, as part of its efforts to further tap into the increased demand for infant formula in China.

The investment will allow Synlait to become one of two manufacturers worldwide to produce lactoferrin as a spray dried powder and to manufacture dairy ingredients that meet pharmaceutical standards.

Lactoferrin is a bioactive protein extracted from milk that provides significant antibacterial protection and other health benefits for people of all ages.

The bioactive protein is in demand globally for use in health foods including infant formula and adult nutritional powders.

The expansion project is expected to be completed between late 2013 and early 2014, and Synlait Milk expects production to reach 18t within four years of commissioning.

Synlait Milk chief executive officer John Penno said that the decision to invest in the ingredient has been accelerated by contracts with eight customers for infant formula, including YinQiao Xi’An, the largest dairy manufacturer in north-western China, Synlait Milk shareholder Bright Dairy, and A2, which will soon launch its own a2 infant formula in China.

"There is a global shortage of lactoferrin driven largely by the demand for infant formula," said Penno.

"As a trusted supplier Synlait Milk is keen to meet its customers’ requirements for an easily soluble lactoferrin manufactured to the same exacting quality assurance standards that Synlait Milk takes pride in attaining for all its products," he added.

Synlait Milk stated that its finer spray dried powder is expected to provide superior solubility properties when used in infant formula.

Lactoferrin will add to the company’s existing range of health and nutritional products, a category identified recently as one of the main contributors to the government’s target of doubling the value of New Zealand’s export earnings by 2025.

Synlait Milk already operates an advanced infant formula production facility at its Dunsandel site in the southern hemisphere.

Recently, the company received approval for the construction of a packaging plant to produce consumer packs for customers and an additional warehouse facility.