China-controlled Mataura Valley Milk starts production

Mataura Valley Milk has received its first milk supply. Picture / Supplied

China-controlled Mataura Valley Milk's production is under way with the first milk delivered to the company's $240 million nutrition plant at Gore today.

Founding director Ian "Inky" Tulloch, a Southland businessman and racing identity, said it was satisfying to see the plant open after eight years of hard work.

Tulloch said in a statement the project was already having a big impact on the district.

Mataura Valley's major shareholder is the state-owned China Animal Husbandry Group.

"It's a proud day for our team and everyone involved in developing what we believe will be the world's best nutrition business," plant general manager Bernard May said.

The first milk from its shareholder suppliers arrived at the plant on Monday morning. Farmer shareholders are represented on the Mataura Valley board.

May said Mataura Milk had been dealing with significant international nutritional customers from the start and would be making product from day one.

Skim and whole milk powder would be produced as the plant came on stream, with the first nutritional formula production scheduled for February.

According to its website, China Animal Husbandry is engaged in modern agricultural and animal farming Industry. The company's business covers manufacturing, trading and customer services, research and development, and financial management.