Mataura Valley Milk on track for August 2018 start

Mataura Valley Milk, which is majority-owned by a Chinese state-owned enterprise, is on track to start production of infant formula at its $240 million Southland plant from August next year, the company says.

Southland farmers are expressing interest in becoming Mataura Valley Milk shareholders and the company expects to fill its supplier requirements for its purpose-built nutrition plant at McNab, near Gore, general manager Bernard May said.

China Animal Husbandry Group (CAHB) will have a stake of about 72 per cent in the plant, which will employ 65 people full time, and which will focus on formula exports.

About 20 per cent of the facility will owned by Southland farm suppliers and the remainder by Hamilton-based milk powder company BODCO and Mataura directors.

May said Mataura Valley's focus over the next six months was recruitment of milk supplier/shareholders, and staff.

The company had received significant interest from farmers in becoming shareholders and was confident of having the 25 to 30 needed by December, he said.

"The farmer shareholders already on board are embracing the opportunity of superior returns by supplying milk into a fully integrated nutritional business," he said.

Dave Yardley, milk supply manager at Mataura Valley Milk, said the new venture was peaking farmer interest.

"Positivity has returned to the dairy sector so people are seeing it as a good time to review where they are and whether they have a better choice out there," he said.

May said the plant's construction was on schedule with the drying tower already at its maximum 40m height.

The plant would be unique in Australasia as it would meet and exceed several international nutritional validation standards and contain features which set it apart from a traditional dairy plant, May said.

CAHG, according to its website, is engaged in the modern agricultural and animal farming industry with a comprehensive range of business, composed of manufacturing and operations, trading and customer services, research and development, and financing management.

Key points:

• About 30,000 tonnes of infant formula will be manufactured each year at full capacity.
• The plant will process about 500,000 litres of whole milk a day.
• A total of 80-85 per cent of the product produced by the plant will be exported.
• 8226;Mataura Valley Milk is a partnership between New Zealand and overseas investors.
• Total plant construction work hours are expected to be about 450,000 hours.