Happy Valley enters into conditional contract to supply nutritional products

11 Jun 2021 3:39 PM | Mike Hearn (Administrator)

Happy Valley and Burt Lewis Ingredients LLC (BLI) have entered into an agreement for Happy Valley to supply batch-formulated nutritional milk powders to BLI once certain operational and quality conditions have been satisfied.

Happy Valley Nutrition Limited (ASX: HVM; ‘Happy Valley’ or ‘the Company’) is pleased to announce a major milestone whereby North American (USA) dairy ingredient distributor BLI, has entered into a conditional supply agreement (‘Supply Agreement’) to source batch-formulated nutritional milk powders manufactured at Happy Valley’s state-of-the-art nutritional grade processing facility in Ōtorohanga, New Zealand, which is in the first phase of its construction.

This is a major development for Happy Valley and an important vote of confidence from a global distributor specialising in dairy ingredients, based in Chicago, USA. https://www.burtlewisingredients.com/

Once operational, Happy Valley’s facility will have capacity to produce 35,000 metric tonnes per annum of nutritional ingredients and formulaic products and aims to commence operations in mid-CY 2023.

Supply Agreement Framework and Key Conditions Precedent
• Purchase of a minimum of 4,800 metric tonnes per annum of batch-formulated nutritional milk powders, destined for export markets.
• Conditional on completion of Happy Valley's facility and satisfaction of BLI's quality assurance requirements.
• Three-year minimum term. Comment Happy Valley Nutrition Limited Chief

Executive Officer Greg Wood commented: “Securing this Supply Agreement validates the requirement for the type of capability our plant offers customers. Our goal is to work with our partners to satisfy market demands.” Release approved by the Chief Executive Officer on behalf of the Board.