Planned Southland plant-based milk factory now heading elsewhere
A planned Southland plant-based milk manufacturing factory will now be built elsewhere, most likely in Canterbury.
Southland has been dealt a blow with a planned plant-based milk factory for the province now expected to be constructed in Canterbury.
The new plant-based milk processing facility had initially been announced for Southland by new company New Zealand Functional Foods.
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.
The company planned to develop a carbon-neutral oat milk factory at Makarewa, north of Invercargill, with the capacity to produce up to 80 million litres of plant-based milk a year.
The New Zealand Functional Foods board was now looking outside of Southland to establish its manufacturing base.
Canterbury is to be the likely base.
The NZFF board passed the resolution at the end of June and quickly shared the news with key stakeholders.
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.
Hoe much money did the council give great south to work with the oat milk plant people expecting them to build their plant here .
What was rate payers financial burden?