The country's second biggest dairy manufacturer and exporter, Open Country, says expansion is on the cards in dairy heartland Waikato - most likely on the site of its brand new Horotiu plant.

Chairman Laurie Margrain said Open Country hadn't committed to a firm plan but the company's next expansion would be either at its Waharoa site, near Matamata, or at the recently commissioned Horotiu dryer plant.

Margrain said expansion would help meet strong overseas customer demand for higher-value ingredients.

Both the company's Waikato plants had full milk supply, he said.

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There were no space restrictions at the Horotiu site, alongside

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