Synlait Milk, a prominent New Zealand dairy processor, is strategically shifting its focus to advanced nutrition at its Pōkeno facility. This decision follows a detailed review indicating inefficiencies in dual processing of dairy and plant-based proteins. The company will now concentrate Pōkeno operations on non-dairy nutrition products, consolidating dairy processing at its Dunsandel site. Synlait remains committed to supporting its dairy farmer suppliers in Waikato and is open to future opportunities with the Pōkeno facility.
Synlait Milk, a leading dairy processor based in New Zealand, has announced a significant strategic shift concerning its North Island assets. Following a comprehensive review, the company has decided to refocus its Pōkeno manufacturing facility exclusively on advanced nutrition products. This decision is part of Synlait’s broader plan to enhance financial performance and streamline operations.
The review revealed that the dual processing of dairy and plant-based proteins at the Pōkeno site was impacting operational efficiency. As a result, Synlait’s Board has opted to concentrate Pōkeno’s operations on producing advanced nutrition items, which do not rely on raw milk. This move is aimed at improving the facility’s profitability and operational effectiveness.
“The review has been detailed and thorough. It’s given us the insight needed to lift the financial performance of these world-class assets. We now have a pathway to ensure our North Island operations will be profitable in the future.”
Grant Watson, CEO of Synlait
The decision comes as Synlait also consolidates its dairy processing activities at its Dunsandel facility. This consolidation is a response to high transportation and manufacturing costs that have made processing milk at Pōkeno unsustainable. Despite the shift, Synlait will continue supporting its 54 dairy farmer suppliers in the Waikato region, with Open Country taking over the collection and processing of their milk.
Synlait has not ruled out selling the Pōkeno facility but remains open to compelling offers. The company’s strategic refocus on advanced nutrition aligns with its long-term goals of profitability and flexibility in a market increasingly influenced by consumer preferences, including a growing interest in plant-based products.
