Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Synlait bolsters testing of milk after Fonterra’s WPC scare

Synlait bolsters testing of milk in wake of Fonterra’s WPC scare last year

By Suze Metherell

Feb. 14 (BusinessDesk) – Synlait Milk, the dairy processor which counts China’s Bright Dairy Food as a cornerstone shareholder, says costs for its planned expansion of its laboratory and administration will more than double as it allows for expansion and ramps up testing of its products.

The Rakaia-based company’s expanded laboratory and administration centre will cost $21 million, up from projected cost of $8.4 million. The new laboratory will include microbiological testing to help “insure it can achieve the ever increasing quality standards require by the world’s most demanding customers,” the milk producer said in a statement.

Last month Synlait said China sales of infant formula and nutritional products may fall short of its 10,000 metric tonne target because stricter regulations had caused “considerable disruption” in that market.

New Zealand’s biggest dairy producer and exporter Fonterra Cooperative Group spooked dairy markets last year with a precautionary recall of whey protein concentrate thought to be contaminated. Later tests proved the bacteria found were harmless.

China is particularly sensitive to dairy safety concerns after melamine-tainted infant milk formula caused the deaths of six children and sickened 300,000 others in 2008.

The expansion of its Dunsandel-based administration facility is in anticipation of the company’s growth, and cements Synlait headquarters in the South Canterbury town, it said.

Synlait reiterated its forecast for earnings to be between $30 million to $35 million, up from its prospectus forecast of $19.8 million. The company listed on the New Zealand stock exchange in July last year.

The shares fell 1.4 percent to $3.65.

The company expects both the new laboratory and administration facilities to be completed by February 2015.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news