Demand is high and is growing for sheep milk powder.
Southland-based Blue River Dairy commissioned last month the first canning plant in NZ to make sheep milk powder and said it planned to lead the way after investing millions of dollars in new technology and machinery.
The southern sheep-milking business increased its milking flock of East Friesian composite ewes from 16,000 to 25,000 in the past year.
Blue River sales and marketing manager Justine Horgan said the company had made a significant investment in the canning plant in Invercargill.
“The market is not good for just bulk powder, we need value-add and that’s why we have gone with the canning line,” she said.
“The investment will give us the capability to manufacture high-value products for export.”
The machine gave the company greater flexibility with production and allowed it to add baby formula to its product range, she said.
Trials were under way and NZ’s first pure sheep milk formula was expected off the line before Christmas.
Blue River would also look at producing baby formula for the domestic market.
The new canning machine was processing 25 cans a minute, about half of its capacity, Horgan said.
Demand was high and growing for sheep milk powder. It was exciting times as the company continued to build on 10 years of hard work, she said.
It was intensive farming, with the 25,000 ewes milked over three main farms in three custom-designed milking sheds.
Lambing was carried out 10 months of the year as flocks were alternated for milking.
“It’s very intensive but that is what gives us the competitive edge.”
Internationally the sheep milk powder was sold out between seasons, she said.
“The way we are managing the farming and milking we can guarantee our customers year-round supply and that’s what we want to do too for infant formula for NZ.”
The first type of infant formula would be the step two follow-on product and it should be available before the end of the year, she said.
“Into 2014 we will grow the range and also include export product.”
China was the biggest export market, followed by Indonesia, Malaysia, Singapore, and the United States, while Korea was a new market, she said.
“The future is all very positive for sheep milk. We are on the last step now getting the product into the cans and into the market and we will be booming.”
Blue River employs 70 staff, with up to 80 expected once the canning plant is at capacity.
Blue River won the Ministry for Primary Industries healthier choice category this month at the NZ Food Awards for its sheep milk powder.
Blue River believed in using nature’s goodness to provide healthy, award-winning, quality products, Horgan said.
Its thousands of sheep grazed on the lush, green pastures of Southland, providing fresh milk daily.
Some of NZ’s finest cheese makers were working continuously to ensure the company’s products were top-quality, she said.
Blue River was vertically integrated, owning its farms, milk, and sheep, transporting its milk to the factory, processing the milk into cheese, ice-cream and milk powder, and marketing its products.
Overseas investment in last year, with the Tachril family, of Indonesia, taking a 50% stake in the business, allowed Blue River Dairy to increase production and expand its export marketing.
The company started operating as a co-operative in Balclutha, south Otago, milking sheep on a 50ha block and specialising in sheep-milk cheese.
In 2002 the co-operative was struggling and was disbanding slowly, until in a sink-or-swim decision Southland rural businessman and company director Keith Neylon saw opportunity and went it alone with Blue River.
The Indonesian investment was used to commercialise Blue River’s existing sheep-milking systems and technologies.
In addition, the Tachril family was well placed to use its business contacts in Indonesia and Southeast Asia to promote and market Blue River products, Horgan said.
Sheep milk was much higher in total solids than cow or goat milk and contained up to twice as many minerals such as calcium, phosphorus, iron, and zinc, she said.
It also contained more of the percentage of A, E, C, and B complex vitamins than cows’ milk and had proven to provide relief for people with eczema and asthma.
Sheep milk was free of the A1 protein and was a great alternative for those with a dairy intolerance, she said.
