Its capacity is one half-tonne/hour, making it one of the smallest commercial spray dryers in the world.
After commissioning and testing, the first fresh milk was converted to powder last month.
Mr Shute says the commissioning went smoothly.
"I've been working in dairy factories for 20 years and I can say we've probably had the smoothest commissioning process of any factory in New Zealand.
"Of course, our small size had a bit to do with this."
Hamilton-based Dairy Goat Co-operative has committed to utilising the plant and up to eight new Dairy Goat Co-operative staff will work on site. The company is using the dryer facility as extra capacity to meet expansion.
"The co-operative's commitment was a critical factor in creating the commercial case, and gaining government funding and approval to build the plant as a private public partnership," says Mr Shute.
Co-operative chief executive Dave Stanley says the project is a winner for those involved.
"Not only did our backing help the [Waikato Innovation] park get the project off the ground, but it also provides Dairy Goat Co-operative with valuable extra processing capacity when our milk flow is at its peak.
"There are many smaller producers in milk processing industries and others who will also experience a win through this project.
"It gives them a place to do research and development as well as process smaller batches of products that can't be done in larger factories," says Mr Stanley.
NZ Food Innovation Waikato is looking for commitments from companies that want to research and develop new spray dried food products in the pilot plant.
Mr Shute says it is talking to specialty milk producers, as well as companies looking to spray dry fruit and vegetable extracts.
Mr Shute says the long-term strategy for the plant is to expand the spray dryer's capability to manufacture infant formula.
"We are currently receiving several calls each week from companies inquiring about our ability to process infant formula.
"Many of these companies are exporting into China, where demand for infant formula is exploding.
"This is definitely in our long-term plans for NZ Food Innovation Waikato," he says.