Great South 'supports' decision to shift planned factory out of Southland
“Having evaluated all the options open to us during this important phase of the project, we understand and support the rationale for the potential change of location.”
Southland’s regional development agency boss says it both supports and understands the rationale behind the decision to not proceed with a plant-based milk factory on the outskirts of Invercargill.
The carbon-neutral plant-based milk processing facility had initially been announced for Southland by new company New Zealand Functional Foods.
It was to be constructed at Makarewa, north of Invercargill, with the capacity to produce up to 80 million litres of plant-based milk a year.
Stephen Tindall’s investment company K1W1 and Southland regional development agency Great South were initial shareholders of the company.
In July 2022 the Government also backed New Zealand Functional Foods through a $6 million contribution as other investors continued to be sought.
However, as reported by The Tribune on Wednesday, the New Zealand Functional Foods board was now looking outside of Southland to establish its manufacturing base.
Canterbury is likely to be the location.
Great South has been involved in this project for over 10 years.
Great South chairman Ian Collier is also a director on the New Zealand Functional Foods board.
“Whilst our own focus at Great South will always be on Murihiku Southland, as shareholders we fully support NZFF and its vision to lead the development of-plant based products,” Collier said.
“Having evaluated all the options open to us during this important phase of the project, we understand and support the rationale for the potential change of location.”
Collier said it was a unique opportunity to prove how “diverse and visionary New Zealand is in the global food industry”.
“This is still a great opportunity for Southland, with world-leading Southland-grown oats now able to be showcased on a much bigger platform.”
Collier said Great South was focused on building Southland’s reputation as a progressive region, encouraging land-use change, advocating for activities to mitigate climate change and adapting to ever-changing consumer trends.
New Zealand Functional Foods CEO Paul Harvey told The Tribune through extensive global engagement the vision has grown significantly. They now foresee an opportunity for NZFF to be world leaders.
“For the success of this greater vision, it is vital that our planned manufacturing base is in the location that allows easy connection and collaboration with industry and infrastructure.
“This led us to the tough decision to move our planned manufacturing location from Southland. It will likely be in the Canterbury region.”
Harvey understood there would be some disappointment in Southland but felt the province would still benefit significantly through the oats that are produced.
“We believe this will showcase Southland’s world-leading oats and innovation on a far bigger platform than just as a standalone oat milk brand or business as was initially envisaged,” Harvey said.
“The Southland story will be a key part of our future and we have strong intention to continue to partner with growers across the region.”
The Beyond 2025 Southland Regional Long Term Plan released last month stated the plant would bring 100+ jobs to the region through construction and 70 direct skilled jobs thereafter.
Harvey said they were working closely with key government stakeholders on the implications of the decision to change tact on the manufacturing plant location after the Government agreed to stump up $6m for the project last year.