State-owned China Animal Husbandry has taken a majority stake in Mataura Valley Milk in exchange for funding construction of a $200 million milk powder manufacturing plant at McNab, near Gore, starting from October.
The Chinese company will hold 71.8 percent of the equity of Mataura Milk with Southland supplier-farmers owning 20 percent, the company said.
Mataura Valley said the venture would create at least 100 new jobs, grow added value dairy exports, and inject “significant income” into the Southland economy.
New Zealand Herald reports that the pharmaceutical standard plant will produce infant formula, ultra-high temperature (UHT) cream and small amounts of skim milk powder, using locally sourced raw milk for global markets.
As part of its “gate-to-plate” supply chain strategy, many of Mataura Milk’s products would be canned and distributed by BODCO, a Hamilton based dairy business with a pharmaceutical-grade blending and packaging facility. BODCO is also a minority shareholder in Mataura Valley Milk, with 5.6 per cent.
Moody said 20 percent of the company will be held by Southland dairy farmers who have the ability to meet Mataura’s raw milk and quality requirements. The remainder of the company will be held by mostly New Zealand investors.
Local directors of the business include prominent Southland farmer and former Mayor of Gore, Ian Tulloch and Hamilton-based businessman Gary Mollard. Construction of the Mataura plant is expected to start in October 2016.
Source – Dairy Agenda