Under the agreement, Synlait Milk will source A2 milk from accredited Canterbury dairy farms and manufacture A2 brand nutritional powders, including milk powders and infant formulas, for A2 Corporation.
It was a "key step" in the company's strategic plan to launch A2 brand infant formula products into high-growth Asian markets, particularly China, A2 Corporation managing director Geoffrey Babidge said in a statement yesterday.
It was estimated the retail market for infant formula in China and southeast Asia was worth $7.3 billion and $3.6 billion respectively.
The market in China was forecast to grow at an average rate of 12% over the next decade.
In November, Synlait Milk officially opened its $100 million infant nutritional facility near Dunsandel, the largest of its kind in the southern hemisphere.
Earlier this month, A2 Corporation announced its Sydney milk processing facility had been commissioned and was supporting the increased demand for A2 milk products.
A2 Corporation was initially backed by Dunedin businessman, the late Howard Paterson.
