22 Feb 2009

Synlait expects to finish season with no unsold stock

9:47 pm on 22 February 2009

The Canterbury dairy company, Synlait, expects to finish the season without any unsold stock, despite the current depressed world demand for dairy products.

The dairy farmer, processor and exporter will process more than 200 million litres of milk at its new drying plant near Dunsandel this season, making high specification milk powders for export.

Synlait's managing director John Penno says the slide in dairy prices, following the commodity boom, has hit it like everyone else.

But his company is taking a different approach to Fonterra, which is stock-piling some product until international prices and demand pick up again.

Mr Penno says as a new entrant company they did a lot of marketing development work before building a manufacturing operation.

He says although prices are lower than a year ago, they have moved all their product and will close this season on virtually no stock, which is pleasing in the current environment.

Mr Penno says he's pleased that the company adopted the strategy of making sales where it could on a falling market.

He says Synlait expects to increase its processing capacity to 300 million litres of milk next season and has plans to almost double that in the next couple of years.