Synlait, New Zealand appears to be positioning itself to capitalise on the growing pea and oat milk protein powder market, projected to grow at an impressive rate of over 10% annually and currently valued at USD $5.20 billion. The dairy processor announced this strategic shift following a comprehensive review of its North Island assets, including the manufacturing facility in Pōkeno and the blending and canning facility in Auckland.
Source: Synlait's modern Pokeno processing plant being repurposed for plant-based products
As part of its business recovery plan, Synlait aims to transform its operations at Pokeno, South of Auckland, to focus solely on producing high-nutrition, non-dairy milk products. Synlait's CEO, Grant Watson, says the strategic move as a path to profitability. "The detailed review provided us with the insights needed to leverage our world-class assets towards tapping into the lucrative non-dairy protein market," says Grant Watson.
Source: Copyright PFN Ai Archives - depiction of what Synlait's blended hyper-protein oat and pea could look like.
The decision to repurpose the Pōkeno site comes in response to operational inefficiencies encountered while alternating between dairy and plant-based protein production. By focusing exclusively on plant-based offerings, Synlait expects to enhance operational efficiency and reduce the financial burdens associated with its previous dairy processes.
The company plans to continue dairy operations at its Dunsandel, South Island facility, ensuring it meets all existing obligations to its dairy farmers suppliers. Grant Watson reassured the 54 farmer suppliers in Waikato would remain integral to the company, with Open Country taking over the collection and processing of their milk.
Synlait’s strategic move not only aligns with the global shift towards sustainable and plant-based nutrition but also positions the company to take a significant share of the expanding pea and oat milk protein market. While the Pōkeno plant is not actively up for sale, Synlait is open to considering compelling offers, signaling a flexible approach to its future business strategy.
For more information CLICK HERE
ENDS:
Comments