Olam Food Ingredients (OFI), a subsidiary of multibillion dollar Singaporean agri-business Olam International, which supplies food and industrial raw materials to over 19,800 customers worldwide, is about to start construction of a New Zealand dairy processing facility on the corner of State Highway One and Campbell Road in the South Waikato town.
OFI ranks among the top three dairy suppliers in the world and the Tokoroa plant will become part of its global network that spans 20 major milk consumption markets including South-East Asia, China, the Middle East, and Africa.
The first stage of the factory development will involve the construction of a spray dryer facility which is expected to be operational by 2023. Additional facilities will then be added over time to include dessert, bakery, beverage, and confectionery dairy categories for the export market.
Operations director Paul Rennie said it was an exciting time for the company and Tokoroa.
“Tokoroa is in the heart of dairy in the Waikato and the Waikato is the engine room of the New Zealand dairy industry.”
OFI dairy senior vice president Naval Sabri said demand for New Zealand dairy was high due to it undeniably being the best in the world. Earlier this year the company sold its 15.19 per cent share in Open Country Dairy for over $80 million to the Talley’s Group in order to reinvest in its own facility.
“[New Zealand] has always been an important origin for us to source good quality dairy products,” he said.
“We obviously work with some large multinational, local and regional buyers who demand a host of ingredients. We can’t do without having access directly into New Zealand so that is why New Zealand will remain an important part of this entire supply chain.”
Sabri declined to reveal how much was being invested into the facility but said it would be “substantial”.
“We are starting with this first investment now in Tokoroa to produce the ingredients, but we obviously have plans to expand this investment to other ingredients in dairy and hopefully over the next five years we will be establishing a substantially large footprint in New Zealand for dairy products.”
“The site is big enough to occupy a few more investments, that is the first target, but we are definitely more than happy to look at other sites across New Zealand as well.”
Rennie said the new factory was expected to create 50 to 60 full time jobs in Tokoroa when fully operational, with more jobs anticipated in future stages of the development.
He said the development would also enhance the town’s southern entrance.
South Waikato Mayor Jenny Shattock welcomed the development and the company’s focus on being sustainable.
“We are delighted OFI intends to become an integral part of the South Waikato community and is focused on operating sustainably including maximising use of renewable energy sources and minimising waste,” she said.
Milk supply general manager Paul Johnson said OFI’s focus was now on talking to local farmers to understand their business needs. The company is taking expressions of interest from potential suppliers, employees, contractors, and general trade suppliers.
