The New Zealand Dairy Collaborative Group (NZDGC) has invested millions of dollars to establish the infant formula processing facility, largely bankrolled by Fineboon, the major shareholder of NZDCG and the largest goat milk infant formula brand in China.
The company planned to process infant goat milk formula in Ashburton and export the canned product to China.
An adult nutritional drink was also in the pipeline.
The $40m plant was nearing completion and scheduled to be commissioned by the end of the year.
The project would initially comprise the infant formula blending and packaging facility with plans for a drying plant in future development.
NZDCG managing director Solomon Ling said goat milk supply had been secured from North Island farmers until an adequate herd of dairy goats was established in Canterbury.
The company had agreement to get 28 tonnes a month of whole milk goat powder from Palmerston North to be blended into infant formula at the Ashburton plant.
The milk was under contract from farmers in Manawatu and Hawke’s Bay.
Ling said the company wanted to work with Canterbury farmers to establish a goat milk supply chain with early negotiations under way with a number of mid and south Canterbury farmers who were keen to add goats to their dairy platforms.
Most were dairy farmers but there had also been inquiries from a small number of arable farmers.
“The problem being we need to get the drying plant built and running before we can take Canterbury raw milk supply as we have to have the actual milk powder to work with to process the infant formula,” Ling said.
NZDCG had plans to build a drying plant on the same site as the processing factory.
“But first we have to get started with this processing plant and get farmers on board then we can look further down the chain.”
“We don’t see the signing off as a problem but we don’t have a timeframe set on it as it’s following a process and we will be ready to start the plant when it’s all signed off.”
Solomon Ling
NZDCG
NZDCG was still finalising Chinese rules and regulations and was yet to get final sign-off from the Ministry for Primary Industries in NZ and its equivalent in China.
“We don’t see the signing off as a problem but we don’t have a timeframe set on it as it’s following a process and we will be ready to start the plant when it’s all signed off,” Ling said.
The blended infant formula would all be exported to China to be sold across the company’s 3500 stores.
Ling said there was potential to tap into markets in Taiwan, South Korea and southeast Asia.
Ultimately the facility would produce up to 3000 cans of formula an hour, equating to roughly 1000 tonnes of milk powder a year to fill 10m cans.
About eight or nine litres of goat milk was needed to produce a kilogram of powder so about 12,000 goats would be needed.
The Ashburton factory would be a showcase for its products, opening its doors to tourism.
The South Island was a big drawcard for visitors from China and the site had room for tour buses.
“We have nothing to hide,” he said.
“Visitors would be welcome to see the production chain through a presentation floor which will provide explanation on the process.”
