Walmart places first Keytone milk order

Callum Godde
Keytone Dairy has announced retail giant Walmart has placed its first milk powder order

Retail giant Walmart has placed its first milk powder order with ASX-listed Keytone Dairy, for export to China.

The dairy producer, which has operations in both Australia and New Zealand, announced on Wednesday it would provide an initial $NZ107,000 ($AU100,000) worth of whole milk and skim milk powder to Walmart subsidiary Sam's Club China.

Keytone announced in May it had won a contract to manufacture milk powder for Sam's Club Chinese network of 18 superstores on request.

The American retail warehouse chain has a major footprint in China, boasting stores in Beijing, Shanghai, Shenzhen, Guangzhou and Wuhan among other locations.

Keytone sells milk powders, health and sports nutrition products, and produces its own brands while also manufacturing for private labels.

Its milk powder is re-branded by Woolworths' New Zealand subsidiary Countdown as part of supply contract struck in 2017.

The dairy company listed on the AXS last July after raising $15 million as part of its initial public offering of 75 million shares priced at 20 cents each.

Keytone shares had lifted 5.06 per cent to 42.5 cents at 1050 AEST.