What Would Synlait Be Worth to Fonterra or a2 Milk?
Speculation of a possible joint move by Fonterra and a2 Milk to buy Synlait raises a much bigger strategic question, says agribusiness expert Dr Nic Lees.
The kitchen will enable Synlait to simultaneously run both its large-scale infant formula spray dryers, doubling infant production from 40,000 tonnes to 80,000t per year.
“We were at the point where our current Wetmix facility was at capacity and our consumer demand was continuing to grow," said John Penno, Synlait's managing director. "This new Wetmix kitchen will relieve that pressure."
The kitchen is at the core of the production process. It mixes dry ingredients (dairy proteins, carbohydrates, vitamins and minerals) into the liquid milk; that mixture is then dried into infant formula base powder. Mixing the dry ingredients into the liquid milk before drying ensures a superior blend quality.
“We’re happy with how the build went,” says Penno. “It was a smooth process completed on time and within budget, without the need to alter our day-to-day operations.”
