“The plant development is in the early stages, we are recruiting for our New Zealand team and a formal announcement is planned in the coming months,” Olam Food Ingredients senior vice president Naval Sabri said.
The plant will be built in Tokoroa in South Waikato.
According to Sabri, there is “a strong and growing demand from our global customers for high quality, New Zealand dairy products”.
The aim of the plant is to meet that demand and offer more customised solutions.
He noted the company has “enjoyed a long and successful history in New Zealand through our previous investment in Open Country Dairy.”
Earlier this year, Olam sold all its 15.19% stake in Open Country Dairy to Talley Group for approximately $80.9 million through Talley’s takeover offer in February. Open Country Dairy is NZ’s second largest dairy processor and has operations in the Waikato.
Sabri says the company’s priority is currently to meet with, and listen to, the views of farmers first.
“This will ensure we deliver on our commitment to develop milk supply partnerships in a way that best meets local needs,” he said.