First post on this page, so perhaps a quick summary; Synlait as...

First post on this page, so perhaps a quick summary;

Synlait as a dairy company has expanded very quickly, they first commenced production from a greenfields site in Dunsandel New Zealand in 2008, they IPO'ed on the NZX in 2013 to raise capital to construct the largest infant formula production facility in the world.

Up until this year Synlait was producing specialist dairy nutritional products which have been subject to international dairy commodity price swings, thus both production volumes and their shareprice have moved in sympathy with bulk commodity auctions, more recently having been caught in a down draught.

Although, hold the press, they have this year just commissioned their new infant formula facility which is amongst the largest in the world with a capacity of 120,000MT per annum, certainly the largest in ANZ by a significant margin.

Going forward now from this point in time, around 80% of Synlaits business will be infant formula production.

Thus the company has arisen out of the global dairy commodity flames to become an infant formula phoenix.

Synlait are presently ramping up their infant formula facility which is at around 40% utilisation. The remaining capacity is in demand as companies like a2m who are presently seeking significant further production must compete to secure a share.

The aim of Synlait is to secure high gross margin value added infant formula customers, they presently produce 100% of all infant formula for a2m who’s brand is differentiated by an a2 protein, they also produce for US brand Munchkins who’s marketing differentiator is ‘grass fed quality’.