Danone Nutricia has announced a new amalgamation deal which will help it shore up its milk production.

It's amalgamated Gardians, the Sutton Group and Nutricia, adding an infant formula facility to its stable and shoring up its long-term fresh milk supplies.

New Zealand Dairy Exporter Magazine editor-in-chief Glenys Christian says the move has been sparked by the Fonterra milk powder scare.

"Of course the botulism scare added an urgency to that, and this has been the result."