Multinational dairy cooperative Fonterra Co-op Group Ltd. on Feb. 21 said it will supply a2 milk products to The a2 Milk Co. Ltd., or a2MC, as part of a new partnership agreement.

Fonterra will communicate with its suppliers in New Zealand to source a2 milk, which contains an A2 type of beta-casein protein instead of the A1 protein more commonly found in regular milk, for a2MC. Under the partnership, Fonterra will hold an exclusive licensing arrangement for the production, distribution, sale and marketing of the products in New Zealand. It will also be a2MC's exclusive supplier of milk powder products for distribution in new markets in Southeast Asia and the Middle East.

The two companies will also explore the establishment of a jointly owned packaging facility.