The Dunsandel-based company added a further 20 supplier farms during the year and processed 498 million litres of milk.

The processor narrowed its annual loss last year, even though surging raw milk prices eroded its gross margin.

Mid-Canterbury milk processor Synlait admits its $100 million equity drive has slowed, but it still has plans to double capacity by 2011.

Earlier this year Synlait chief executive John Penno speculated that the company would not have difficulties raising the funds it needed to build a second large drier at its Dunsandel factory.

The factory held its official opening in February after a bumper season. Then it had forward supply contracts to grow production to 300 million litres and a second large drier would double its processing capacity to 550 million litres.