M Boost for Southland Plant-Based Dairy Plant

$6M Boost for Southland Plant-Based Dairy Plant

A new plant-based milk processing facility in Southland receives a $6 million boost from the government.

Economic and Regional Development Minister Stuart Nash Minister Stuart Nash visited Invercargill today where he met with representatives of Southland-based oat milk producer New Zealand Functional Foods and announced the investment by the Regional Strategic Partnership Fund.

Mr Nash said the initiative is a perfect fit with the Regional Strategic Partnership Fund, which aims to build more productive, resilient and sustainable regional economies.

The investment would help build a specialized, large-scale processing plant in Makarewa, with the capacity to produce up to 80 million liters of plant-based milk per year, he said.

Plant-based milk alternatives are a fast-growing segment of the domestic and international consumer markets, with the amount Kiwis spend on plant-based milks nearly tripled from $52 million in 2017 to $144 million in 2019 – so the demand is definitely there.

“We know oats grow well in Southland, and because they have low water use, land use and emissions, they are an excellent raw material for an environmentally sustainable alternative milk option.

“Producing oat milk locally is a lucrative way to diversify our strength as a quality food producer.”

Southland did not have the proper processing facilities to produce the required quantities of oat milk domestically.

“I am confident that this new facility will contribute to Southland and New Zealand’s reputation as a true player in the sustainable food and beverage sector,” said Mr Nash.