The dairy factory in the heart of Mycoplasma bovis territory could avoid major effects from the outbreak this season.

Oceania Dairy is located near Glenavy, just north of the Waitaki River, and within cooee of the farms where the bacterial cattle disease was first confirmed in New Zealand a year ago.

The factory is owned by Inner Mongolia Yili Industrial Group, China's biggest dairy company and the world's 10th-largest. Oceania Dairy was its first investment outside China.

Since it began operating in August 2014, the Glenavy plant has produced a range of milk powder for export to China, where it is used as an ingredient in finished goods such as infant formula, consumer milk powders, ice cream, yoghurt and liquid milk products.

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Oceania Dairy general manager Roger Usmer told Central Rural Life last week it was ''tracking pretty well'' for the new season.

Although it was too early to know how much milk would be coming from suppliers this season, the ''great winter'' should result in high levels of production from most herds, Mr Usmar said.

He hoped any potential loss in milk volume that might be incurred because of M. bovis would be more than offset by the favourable conditions on the region's farms.

Oceania Dairy had not sought new suppliers, due to its product mix, Mr Usmar said. It was ''above budget'' so far.

Farmers had taken plenty of knocks lately, so it would be terrific if they benefited from the superb climate with a bumper season, he said.

Central Rural Life