The $220 million plant, which opened in early November, is working with an existing milk processor on commercial milk supply. It intends to tender for future milk supply but a date for that move is yet to be announced.
However local farmers would see it as being very advantageous if they were able to supply the plant directly, Federated Farmers Dairy’s vice-chairman and Thames farmer Kevin Robinson said. At present their choices are to supply Fonterra or put their names down on a long waiting list to supply Open Country Dairy.
Some farmers might offer their milk to Yashili directly in the future depending on the length of contracts it signed with processors.
“There’s unease from some Fonterra suppliers around its performance and I wouldn’t mind betting there could be an approach,” he said.
“If people are unhappy with Fonterra they might want to talk to them. But Fonterra might get its act together.”
He said Federated Farmers had not yet met with Yashili.
Construction of the plant, the first autonomous overseas factory for the Chinese dairy industry, started three years ago and will employ 85 staff. It will produce premium-quality infant formula under the brand Super Alpha-Golden
Stage and expects to produce 52,000 tonnes a year with shipment starting early in 2016.
Yashili New Zealand general manager, William Zhao, said the opening marked a significant milestone in its journey across the world.
The 3000m2 plant would give Yashili a world-class production base which was humidity and temperature-controlled at all times to ensure consistency of production.
Sun Yiping, chief executive of China Mengnui Dairy and chairwoman of Yashili International Holdings, said Mengnui, which has a controlling stake in Yashili, was committed to innovation and the plant’s opening was an important milestone on its way to globalisation.
Prime Minister John Key officially opened the plant and said infant formula was worth five times the value of milkpowder. He said sales were set to be boosted by China’s change to allow parents to have two children. China’s infant formula market was expected to grow to $32 billion by 2017.
Yashili sells its products through 1500 regional distributors to more than 105,000 retail outlets in mainland China.
The aim was to supply consumers with more high-tech health foods. The company was expanding its e-commerce sales channel as a lot of young consumers bought milkpowder online.
