New Zealand-based milk company A2 has opened a new processing facility at Smeaton Grange,New South Wales,to cater to the increasing demand for its a2tm brand milk products in the region.

The new facility will have the capacity of processing 60 million liters of milk annually supplied by specialist a2tm certified dairy herds in Australia,reported voxy.co.nz.

A2 chief executive officer Geoffrey Babidge said the demand for a2tm brand milk will continue to be increasing in the region.

"Consumer acceptance of a2tm brand milk as easy to digest and with other potential benefits has been achieved against a background of competitive price pressure for standard milk,"Babidge said.

Sales of the a2tm brand milk increased by 45%over the past 12 months and the brand currently holds 6%share in the Australian marketplace,Babidge added.

The move is a part of the company's strategy to develop a2tm as a globally recognized brand.The company plans to enter the infant formula market in Asia and an agreement is in place with an in-market participant for distribution and marketing.