Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Multi-Million Dollar Factory For Westland Dairy

New Multi-Million Dollar Factory For Westland Dairy

A bumper season for Westland dairy farmers and the promise of future growth has prompted moves by the Westland Co-Operative Dairy Company to build a new whole milk powder plant.

The company today lodged an application with the Westland District Council for resource consent to build the plant.

The new milk powder plant at the Hokitika processing facility would have a capacity of 6.5 tonnes per hour, allowing Westland Dairy to manage an additional 1.5 million litres of milk per day.

It is estimated that it will cost $55- $60 million to build the new plant.

Westland Dairy recently announced that the price paid for milk is being increased from $3.70 to $4.25/kg. The company is forecasting an end of season payout of $5/kg. That¹s an increase on last year¹s end of season price of $3.77. It comes as a result of a season of record growth, high export prices and a favourable exchange rate.

"The current plant is fast reaching its capacity which is why Westland Dairy has been investigating and assessing the potential benefits of a new plant," says CEO Terry Norwood.

"Dairy farmers in the West Coast region will produce 28 million kilograms of milk solids this season that will be converted by Westland Dairy into a range of milk powders as well as butter and casein at the Hokitika and Karamea processing sites. Our milk intake for the year is presently 13% ahead of last year."

"Growth in milk in the region has averaged 8.2% a year for the last 15 years (twice the national average) coming from existing on-farm improvements and conversion of new land to dairying. Westland Dairy needs to be able to manage future growth," says Mr Norwood.

"With this development, we could provide the best service for farmers in our region and ensure a healthy mix of milk powder products for our national and international markets."

A new factory would include a new drier, additional boiler and the development of increased storage capacity.

Westland Dairy is also reviewing the impact of the increased production on laboratory, reception and milk treatment resources.

At this stage, Westland Dairy plans to begin work on the new plant in June of this year with completion scheduled for August of 2002.

Westland Dairy is continuing to consider whether to be part of the proposed merger between Kiwi Dairy Co-op and New Zealand Dairy Group or continue as an independent stand-alone company.

"The new plant would have been undertaken regardless of the future structure and ownership of the company," says Terry Norwood.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Electricity Market: Power Panel Favours Scrapping Low-Fixed Charges

An independent panel reviewing electricity prices favours scrapping the government’s low-user fixed charge regime, banning the use of prompt-payment discounts, and requiring greater disclosure of the profit split between the retail and generation arms of the major power companies. More>>


Bottomless Oil And Zero Climate Cost: Greenpeace Not Big On PEPANZ Gas Ban Report

The NZIER report commissioned by oil industry body, PEPANZ, claims the oil and gas ban issued by the Government last April could cost the the New Zealand economy $28 billion by 2050... But Greenpeace says the figures in the report are based on false assumptions and alternative facts. More>>


Two Queensland Fruit Flies And A Different One In Otara: Devonport Fruit And Veg Lockdown

Work continues at pace on the biosecurity response following the discovery last week of one male Queensland fruit fly in a surveillance trap in the Auckland suburb of Devonport. More>>


Digital Services Tax: Government To Plan Tax On Web Operator Income

New Zealand is to consult on the design of changes to tax rules which currently allow multinational companies in the digital services field to do business here without paying income tax. More>>