Dairy outfit may spend millions
A rival to dairy giant Fonterra could spend millions of dollars on research in Manawatu¯ .
Canterbury-based dairy company Synlait will use some of its $7 million annual research and development budget at Massey University and its FOODPILOT unit.
It wants to spend the money on innovation, specifically on processing and packaging, as well as new products, and plans to develop a new centre for its operations.
Synlait has one processing plant at Dunsandel, with four milk dryers, and has several infant formula facilities.
The company is establishing the research and development centre at Palmerston North so it can continue building its expertise in food technology, says managing director and chief executive John Penno.
‘‘We recognise that Palmerston North is the centre of dairy excellence in the country, and we think this is a really important partnership. It will depend how it develops how much of the $7m budget goes into it.’’
But he said it could increase. ‘‘There is a pilot plant at Massey University, but most importantly it is the expertise and the calibre of people there. They have a deep experience of the food industry. And it is better than trying to recreate a pilot plant here [in Canterbury].’’
Penno said many of Synlait’s staff were Massey University alumni and they were pleased the company now had links with people at the university.
‘‘We are serious about growing our research category and development capability and plan to double our investment over the next two years.
‘‘This is a first step for us as we progress towards new products, categories and markets in the future. We need our capability in this area to stay ahead of the game,’’ he said.
‘‘This centre will have a real impact on Synlait’s future. The team will help us launch new highreturning dairy categories and bring new product options to market.’’
Synlait’s general manager of innovation and technical services, Roger Schwarzenbach, said they would have access to some of the best scientific, technical and commercial minds, as well as equipment in the dairy field.
‘‘[The new venture] is a perfect environment for our new team to explore options for diversifying our business at both a product and process level.’’
Initially, the centre would employ food technologists and engineers.
‘‘We will recruit a team in Palmerston North who aren’t afraid of a challenge and really want to make their mark,’’ Schwarzenbach said.
FOODPIILOT is part of Foodhq at Massey University, where there is a concentration of food science research.
Central Economic Development Agency chief executive Linda Stewart said Synlait was making a considerable investment in the partnership, which was really exciting news for the region.
‘‘Synlait had the opportunity to select from any of the four main research hubs in New Zealand.
‘‘But they picked Manawatu¯ because they recognised we’re at the forefront of agri-food innovation.’’
Palmerston North mayor Grant Smith said the agency and Spearhead Manawatu¯ had been making strong efforts to attract companies and this was starting to bear fruit. ‘‘Let’s hope it’s the first of many good announcements to come.’’