Canterbury-based processor Synlait Milk says it has decided to take a "significant allocation" of milk from Fonterra as permitted under the Dairy Industry Restructuring Act for the year ending July 2014.

Synlait Milk has reassured its customers that all products it has manufactured are safe.

South Canterbury milk processor Synlait Milk's shares jumped 58c shortly after its launch on the NZ Stock Exchange today.

Federated Farmers believes the 7.5% shareholding in Synlait taken by FrieslandCampina Investments Holding BV1, a subsidiary of Dutch Dairy Cooperative giant FrieslandCampina, could shake-up the New Zealand dairy industry.

Synlait Milk has set a final price of $2.20 per ordinary share to be offered to institutions and selected NZX firms in its Initial Public Offering (IPO) which opens today (July 9).

Synlait Milk plans to raise $75 million new primary capital and will also hold a secondary sell down set at about $45 million.

Michael Stein, a former director of quality for one the world's leading companies in paediatric nutrition, will join Synlait Milk as general manager quality later this month.

A focus on relationships with some of China's leading dairy brands is earning accolades for Canterbury's Synlait Milk Ltd (Synlait).

SYNLAIT MILK is to spend $15 million on upgrading its special milks drier at Dunsandel to further tap the $15 billion a year demand for infant formula in China.

SUPPLIERS TO Synlait Milk can earn 6c/kgMS more for their milk next season, and possibly 12c/kgMS after that, if they achieve new, internationally accredited assurance standards.