At its Annual Milk Supply Conference in Christchurch, New Zealand earlier today, Synlait unveiled its partnership with Munchkin Inc.
Munchkin, a California-based baby products manufacturer, plans to launch Grass Fed brand infant formula - exclusively manufactured by Synlait in New Zealand - in the US and China.
Synlait, part owned by FrieslandCampina, hopes its partnership with Munchkin will help "reduce its exposure to China."
"Munchkin, with its focus on the United States market, is a potentially important addition to Synlait's growing portfolio of retail-ready infant formula customers," it said.
Raw milk produced in line with the Grass Fed standard - developed by Munchkin and Synlait - will be used to manufacture this "unique" infant formula, Synlait said.
Under the Grass Fed standard, cows are required to graze exclusively on a pasture and crop-based diet.
This, Synlait said, represents a "premium earning milk supply opportunity" for dairy farmers.
"Grass Fed is a unique value added opportunity that will reward a small group of Synlait suppliers who choose to follow the new standard by paying them a premium for their milk, over and above the base milk price," it said.
According to reports from New Zealand, Synlait is initially looking for 25 suppliers to follow the Grass Fed standard.