The Country
  • The Country home
  • Latest news
  • Audio & podcasts
  • Opinion
  • Dairy farming
  • Sheep & beef farming
  • Rural business
  • Rural technology
  • Rural life
  • Listen on iHeart radio

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • Coast & Country News
  • Opinion
  • Dairy farming
  • Sheep & beef farming
  • Horticulture
  • Animal health
  • Rural business
  • Rural technology
  • Rural life

Media

  • Podcasts
  • Video

Weather

  • Kaitaia
  • Whāngarei
  • Dargaville
  • Auckland
  • Thames
  • Tauranga
  • Hamilton
  • Whakatāne
  • Rotorua
  • Tokoroa
  • Te Kuiti
  • Taumurunui
  • Taupō
  • Gisborne
  • New Plymouth
  • Napier
  • Hastings
  • Dannevirke
  • Whanganui
  • Palmerston North
  • Levin
  • Paraparaumu
  • Masterton
  • Wellington
  • Motueka
  • Nelson
  • Blenheim
  • Westport
  • Reefton
  • Kaikōura
  • Greymouth
  • Hokitika
  • Christchurch
  • Ashburton
  • Timaru
  • Wānaka
  • Oamaru
  • Queenstown
  • Dunedin
  • Gore
  • Invercargill

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / The Country

Government lends Westland Milk $9.9 million for new plant

By Rebecca Howard
BusinessDesk·
29 Nov, 2018 01:04 AM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Westland Milk chief executive Toni Brendish. Photo / Supplied

Westland Milk chief executive Toni Brendish. Photo / Supplied

A $9.9 million government loan will help Westland Milk Products reduce its dependency on bulk dairy commodities, chief executive Toni Brendish said.

Regional Economic Development Minister Shane Jones said the interest-bearing, repayable loan from the Provincial Growth Fund will support the development of segregation facilities at the co-operative's Hokitika site, enabling Westland Milk Products to collect and process different types of milk products, such as A2 milk and colostrum.

The $22m plant is part of the company's five-year strategy and Brendish told BusinessDesk the remainder will be funded from "our normal, ongoing capex."

"Generally, you would fund capex out of depreciation. That creates a lump sum of money that we can put into various forms of capex. The balance will come from that."

She said the government's loan makes it possible to bring this particular project forward and "therefore it brings the investment and return opportunities for Westland and the West Coast forward". The plant will be operating in time for the 2019-2020 season.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Paul Goldsmith, National party spokesman for economic and regional development, said the funds were "a soft loan for Westland Milk Products... at a rate no bank was willing to offer".

He warned that the government and taxpayers "shouldn't be taking on the role of a bank, especially one that is directly controlled by ministers."

In its annual report, Westland signaled the need for access to "new and increased capital" in order to create value for its farmer shareholders and said it was focused on producing high-value, segregated products throughout the season.

Advertisement
Advertise with NZME.

Currently, it can produce some segregated product but during peak seasonal milk production the existing plant capacity forces it to process low-value, bulk commodities just to get the milk volume through.

The cooperative is currently undertaking a capital structure review and will give shareholders a progress report at the annual general meeting on December 5.

"We simply can't compete in the bulk dairy commodities arena where we have little influence or control over the vagaries of the global dairy trade, and a reduced ability to ride out its highs and lows," Brendish said.

"It makes sense for us to focus on low-volume, segregated, high-value products that are far less susceptible to the cycles of the global dairy trade market. There is growing demand from customers prepared to pay premium prices for bespoke products that meet their, and their consumers', particular needs," she added.

Discover more

Business

Cargo ship carrying stink bugs ordered to leave NZ

29 Nov 04:40 AM
Opinion

Editorial: Shane Jones should not be Santa Claus

05 Dec 04:00 PM

Lack of answers frustrates shareholders

09 Dec 07:39 PM

While the plant is being built to take two products initially in the future it will be able to process liquid milk from sheep and goats and even plant-based milk, she said.

Along with the funding for Westland Milk, Prime Minister Jacinda Ardern also announced the Provincial Growth Fund would provide $87.5m for West Coast tourism, $32.8m for extending ultra-fast broadband and mobile coverage in the region, and $10m for a garnet mining project at Ruatapu.

Save

    Share this article

Latest from The Country

Premium
Opinion

Thomas Coughlan: Govt mulls dramatic local government reform, slashing councils

04 Jul 05:00 PM
The Country

‘Huge growth potential’: Willis on wool challenges during visit to NZ’s biggest scourer

04 Jul 05:00 PM
The Country

'Sassy' success: Climate-resilient apple's exports set to double

04 Jul 05:00 PM

There’s more to Hawai‘i than beaches and buffets – here’s how to see it differently

sponsored
Advertisement
Advertise with NZME.

Latest from The Country

Premium
Thomas Coughlan: Govt mulls dramatic local government reform, slashing councils

Thomas Coughlan: Govt mulls dramatic local government reform, slashing councils

04 Jul 05:00 PM

News of merging ministries was just the tip of the iceberg.

‘Huge growth potential’: Willis on wool challenges during visit to NZ’s biggest scourer

‘Huge growth potential’: Willis on wool challenges during visit to NZ’s biggest scourer

04 Jul 05:00 PM
'Sassy' success: Climate-resilient apple's exports set to double

'Sassy' success: Climate-resilient apple's exports set to double

04 Jul 05:00 PM
Premium
Ex-TV host Matt Chisholm's bold new career; 'Hugely unpopular' - battle royale brews inside Stuff

Ex-TV host Matt Chisholm's bold new career; 'Hugely unpopular' - battle royale brews inside Stuff

04 Jul 10:13 AM
From early mornings to easy living
sponsored

From early mornings to easy living

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP