The a2 Milk extends supply agreement with Synlait Milk

SYDNEY: The a2 Milk Company (a2MC) has agreed a variation to its comprehensive manufacturing and supply arrangements with Synlait Milk Limited.

This agreement is a key part of a2MC’s global supply strategy. The supply agreement for a2 Platinum and other nutritional products, announced to the market on 3 July2018, provided for a minimum term of five years, with a rolling three-year term from 1 August 2020.

The key components of the revised agreement are:

  • A two-year extension to the term of the agreement, effectively providing for a new minimum term to, at the earliest, 31 July 2025;
  • An increase in the volume of nutritional products over which Synlait already has exclusive supply rights;
  • Increased committed production capacity from Synlait;
  • Pricing terms that reflect the commitment on the part of both companies to an ongoing market-competitive pricing regime.
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