New Zealand-based milk firm A2 Corp. has outlined plans to boost its business in Western Australia with a co-packing deal with local dairy Brownes Food Group.

Brownes will produce A2-branded milk from November for sale in Western Australia, the New Zealand firm said today (10 September).

A2 serves the state from its dairy in Sydney but said it had been looking to "efficiently" meet rising local demand.

"This is a strategic medium term supply agreement that will deliver Western Australians the high quality A2 fresh milk direct from West Australian farms. Brownes fully supports the A2 proposition and is well positioned to meet the expected increase in consumer demand," CEO Geoffrey Babidge said.

A2 said Australian sales of its fresh milk were up 48% in the 12 months to the end of June, which it claimed made it the fastest-growing dairy brand in the country. It said it now accounts for 7.4% of fresh milk sales in Australia by value.

Babidge said the surplus capacity at A2's Sydney site was expected to be taken up by increasing demand in New South Wales.

He added: "There will also be efficiencies from lower transport costs in servicing Western Australia and benefits from an increased product supply there."