Miraka chief executive Richard Wyeth.
Miraka, the Taupo-based and Maori-controlled dairy company, will dip its toes into the branded consumer products market with the launch a new product, Whaiora, next month.
The company, which is just over 20 per cent owned by Vietnam's Vinamilk, has been going for six years, starting off first in whole milk powder and later branching out into ultra heat traded (UHT) milk aimed at the business to business (b2b) market.
Chief executive Richard Wyeth said Whaiora is a natural smoothie blend, combining milk, honey, oats, fruit and vegetables. The product, which is in powder form, is aimed at the "lifestyle" consumer market.
The brand name comes from the Maori words "whai ora" which translate to mean the pursuit of wellbeing.
"It's taken two and a half years of development with the marketing team and (the Crown Research Institute) Plant and Food Research developing the recipe for us," he said.
"This powdered product means that consumers can add water and basically get all the natural elements that they are looking for," he said, adding the product would be available initially online.
Miraka has already signed distribution deals for Whaiora in Malaysia and Singapore.
Wyeth said Miraka's strategy was to first focus on commodities - whole milk powder - before venturing in to value added.
Whole milk powder - the key commodity for New Zealand dairy producers - still forms the bulk of its revenue.
"Our strategy has always been the same - to start with commodities, develop the b2b model with UHT and then also to develop consumer brands, which is what we are doing with Whaiora," he said.
Miraka, which has 109 farmer suppliers around Taupo, will also launch a whole milk powder called Taupo Pure, in sachet form, for sale in China, this year.
As it stands, about 80 per cent of Miraka's milk is in wholemilk powder and 20 per cent is in UHT.
However, 40 per cent of the company's revenue comes from its value-added b2b products.
"Whole milk powder (WMP) is still a significant business but over time we would be looking to have 50 per cent at least of our revenue coming from value-added," he said.
"WMP is a solid foundation to build the business on - it provides a good, steady return," he said.
Miraka paid a $6.22 per kg of milk solids farmgate milk price last season, and has forecast a $6.30 to $6.60/kg milk price for the season ahead.
Vinamilk is the largest dairy company in Vietnam and is one of the country's biggest companies.
Miraka is a private company so there are no publicly available accounts, but Wyeth said it had been profitable "from day one".
The company's processing plant is sited at Mokai, 30km northwest of Taupo, and uses sustainable and renewable geothermal energy.
The plant has the capacity to process more than 250m litres of milk into powders and UHT products every year.
Miraka is controlled by Wairarapa Moana Incorporation, Tuaropaki Trust, Waipapa 9 Trust, Hauhungaroa Partnership, Tauhara Moana Trust and Huiarau Farms. The Global Dairy Network - which markets Miraka's products - has about 1 per cent.