Kyvalley Dairy Group signs long term agreement with a2 Milk Company
Kyvalley Dairy Group has announced a new agreement with The A2 Milk Company (Australia) Pty Ltd (a2MC) to extend their long-standing supply and processing alliance. Kyvalley Dairy Group has been a foundation supplier to The A2 Milk Company since 2003, supplying approximately 55 per cent of the a2 raw milk, and packing 100 per cent of a2 milk products sold in Victoria, South Australia and Tasmania.
The new alliance between Kyvalley Dairy Group and a2MC will include a long-term supply agreement for the sourcing, processing and packing of a2MC products and a sale and lease back
arrangement from Kyvalley Dairy Group to a2MC. In addition, a2MC will fund the expansion and
upgrade of the processing facility in Kyabram that will be managed by Kyvalley Dairy under a lease and revised long-term supply agreement. The upgrade will benefit both businesses by providing additional capacity and improved facilities that will create factory efficiencies and ensure the continued delivery of high-quality products to consumers.
Michelle Sonnenschein, Chief Executive Officer of Kyvalley Dairy Group said, “This is an exciting
outcome for our business and provides security into the future for both our valued employees and our suppliers.” This sentiment was echoed by the Asia Pacific CEO of The A2 Milk Company, Peter Nathan, “We have had a very strong and long-term relationship with the team at Kyvalley Dairy Group and this alliance, and our significant investment into the facility in Kyabram, demonstrates our confidence in the a2Milk™ brand, the strength of our partnership with KVDG and the economic benefit a2 Milk ™ continues to have for regional Australia”.
The new alliance and the upgrade of the Kyabram facility will provide the region with employment opportunities and support dairy farming families with secure long-term supply opportunities. The upgrades are expected to commence early 2021. In addition, Kyvalley Dairy Group also operates facilities in Geelong that will ensure a secure supply chain across Victoria.
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