New Zealand dairy producer a2 Milk will begin offering its milk drinks in Canada via a new distribution deal with Agrifoods.

The Kiwi business has inked a production, distribution, sale and marketing contract with the local firm to provide a range of milk drinks later this year.

The Agrifoods cooperative has more than 2,700 members.

A2 already serves Australia, New Zealand, China and the US.

A2 chief executive Geoffrey Babidge said on Thursday brand development work already undertaken in North America would help expansion.

A2 will provide Agrifoods with access to its intellectual property and marketing assets, and help with the processing of its milk.

Both will work with Canadian farmers to source milk.

A2 in February reported first half net profit up 21.1 per cent to $NZ184.9 million ($A177.6 million).

The company’s ASX-listed shares were worth $15.50 before trade on Thursday, having dipped 7.7 per cent from a seven-month high of $16.80 last week.

A2 Milk had slumped to a then 11-month low of $11.28 in November before embarking on a year-ending climb.