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

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news