Open Country Dairy launches butter line at Waharoa, boosting protein‑fat mix, recruiting 70 farms and forecasting $10.70/kgMS payout.
Open Country’s Butter Debut Sparks Dairy Innovation
Open Country Dairy chief executive Mark de Lautour says entering the butter market is an exciting time for the company.

New Zealand’s #2 processor launches commercial butter amid multi‑million investment in fats and whey.

Open Country Dairy, New Zealand’s second-largest milk processor, is on track to begin its first commercial butter production within the next two months at its Waharoa facility in Waikato. The move marks a significant milestone for the co-op, aligning with robust global demand and record butter prices.

The new butter line is part of a broader multi-million dollar capital investment, upgrading the whey processing plant and main dryer at Waharoa. Open Country CEO Mark de Lautour highlighted that capturing both proteins and fats onsite creates a balanced dairy output, optimizing the yield from existing cheese operations.

The company sees a global trend favoring natural dairy fats over plant-based alternatives. De Lautour noted increasing consumer recognition that “natural protein and fats are good for you,” describing the timing for butter production as “exciting” amid changing nutritional perceptions.

To support the expanded fat and whey extraction capacity, Open Country is recruiting more farmers across its three regional supply zones: Waikato/Bay of Plenty, Manawatū/Taranaki, and Southland/Otago. De Lautour emphasized that processor investments require backing from sufficient farm-gate volumes, describing it as a “leap of faith” in supplier engagement.

The investment footprint also extends beyond Waharoa, with additional plant upgrades slated for Whanganui and Awarua. Now servicing about 1,100 dairy suppliers and onboarding 70 new farms, Open Country expects to raise its milk payout above $10/kgMS, forecasting a robust $10.70 mid-point in its fourth payout — reinforcing confidence in market fundamentals.

Source: Rural News (Rural News Group) – Open Country Dairy prepares to launch first commercial butter

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