A2 Corp, the NZAX-listed alternative milk company, has signed a supply agreement with Canterbury processor Synlait Milk as it seeks to launch its infant formula into Asian markets.

The deal will see Synlait Milk source A2 milk from accredited Canterbury suppliers, and manufacture A2 brand nutritional powders for A2 Corp to sell in international markets. With the supply agreement sealed, A2 Corp said it will press on with negotiations to enter into marketing and distribution partnerships.

"This agreement with a highly reputable supplier of nutritional powders is a key step in our strategic plan to launch A2 brand infant formula products into high growth Asian markets, in particular China," managing director Geoff Babidge said in a statement.

The shares climbed 5.9 per cent to 54 cents and have surged some 112 per cent this year. Last year, the company raised $5.2 million in a share placement at 37 cents apiece.


Earlier this month A2's Sydney-based milk processing started operating as the company looks to build on its growing Australian sales.

The company boosted sales 56 per cent to $30.1 million in the six months ended Dec. 31, and has flagged a British launch later this year.

A2 Corp claims its milk is healthier than traditional A1-type milk although those claims haven't been backed by scientific evidence.