DAIRY INGREDIENTS
Managing director and chief executive
42 MAY 2018
John Penno says lactoferrin is a
high-value specialty ingredient used
in a range of nutritional food products
around the world. “This agreement is a major step
forward for our growing lactoferrin business and
delivers to our strategic commitments,” he says.
Lactoferrin is an iron-binding protein recognised for
its anti-bacterial and anti-inflammatory properties.
As a naturally occurring milk protein, it is commonly
used in infant formula products throughout the world.
“We’re deliberately building our lactoferrin business
with stable, long-term growth in mind,” Penno says.
“This agreement is a major step forward in this
direction and continues to build our credibility as a
producer of specialty dairy nutrition ingredients to
world-leading nutritional companies. Our investment
decision to double our lactoferrin manufacturing
capacity is underpinned by three factors: a strengthening
global market for lactoferrin, growing internal
demand for our own infant formula manufacture and
a secure portfolio of reputable lactoferrin customers.”
Synlait observed in its interim results that a demand
and supply imbalance is driving global strengthening
of lactoferrin prices, and demand is notably driven
from increasing use of lactoferrin in infant formula,
particularly in China. The expansion to Synlait’s
lactoferrin facility is expected to be completed by
October 2018. “As a specialty ingredient, lactoferrin
commands a much higher price per metric tonne than
many other dairy-based ingredients. This is because
of its unique functional properties, as well as the
complexity of production processes,” group category
manager Dr Elizabeth Reid says. Synlait’s unique production
processes, experience in making lactoferrin
and access to a range of laboratory and technical expertise
makes them one of the few producers in the
world offering reliable access to significant quantities
of infant nutrition-grade lactoferrin. “It’s a coveted
position we’ve worked towards since we started
producing lactoferrin in 2014,” Reid says. “Our
growing customer base use lactoferrin in a range of
products from health supplements to infant formula.”
A year ago, Synlait became the second company in
the world to receive a GRAS (Generally Recognised
As Safe) notice from the US Food and Drug Administration
(FDA) to export its lactoferrin to the United
States for use in infant formula and toddler formula.
GOOD NEWS
FOR SYNLAIT
Synlait Milk has secured a multi-year
lactoferrin supply agreement that will
underwrite an investment of approximately
$18 million to double lactoferrin
manufacturing capacity at Synlait Dunsandel.
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