New Zealand’s dairy processing company Synlait has agreed to acquire a 582ha farmland adjacent to its Dunsandel facility for NZD$25.7m ($16.2m).

This acquisition forms part of the company’s long-term operation and expansion plans for Dunsandel’s facility.

Synlait intends to leverage this acquisition to pursue several strategic supply chain and sustainability initiatives.

The company has obtained the Overseas Investment Office (OIO) consent.

Synlait CEO Leon Clement said: “Our purpose at Synlait is doing milk differently for a healthier world and this land provides a unique opportunity to pursue on-farm sustainability initiatives and reduce our environmental footprint whilst creating further supply chain efficiencies in our business.

“We’re excited about this opportunity and look forward to updating you on our plans as they progress.”

The deal will allow Synlait to evaluate and trial sustainable farming practices, as well as help it to carry out on-farm research.

Synlait expects the acquisition to support its ten-year sustainability targets. These include a commitment to evolve best practice farming in New Zealand through its ‘Lead With Pride’ programme.

Through this deal, the company will gain greater control over water rights and the capability to build a rail sliding adjoining Dry Store 4.

In October, Synlait announced a conditional acquisition of the South Canterbury, New Zealand-based Dairyworks for NZD$112m ($71m).

Established in 2001, Dairyworks produces cheese, butter, milk powder and ice-cream at its manufacturing facility in Christchurch, New Zealand.

It offers its products under various consumer brands, including Dairyworks, Rolling Meadow and Alpine.

It distributes its goods to supermarkets in New Zealand and Australia.