Synlait has decided to focus its Pokeno’s operations on producing advanced nutrition products that do not require raw milk.
The decision comes after the company completed a review of its North Island assets, which found switching between processing plant-based proteins and dairy restricts the Pokeno plant’s operational efficiency.
The review also found that the transportation, along with several manufacturing costs, are not financially viable for Synlait to continue processing milk at Pokeno.
Meanwhile, the company will maintain the Dunsandel facility as the business hub for dairy operations.
“They (North Island farmers) will remain Synlait suppliers until the end of their supply agreements and we will remain their first port of call for support,” said Grant Watson, Synlait CEO.
“What will change is that Open Country will be collecting and processing their milk.”
Synlait said that it will not actively look for a buyer for the Pokeno facility but may consider should it receive a compelling offer.
