Sharechat Logo

New spray dryer planned at Waikato Innovation Park as sheep milk ramps up

Monday 22nd January 2018

Text too small?

A new $45 million food spray dryer is being planned for Food Waikato as demand from the sheep milk industry ramps up, says Waikato Innovation Park chief executive Stuart Gordon. 

Food Waikato, which is located at Waikato Innovation Park, currently has one open access development spray dryer, which came online five years ago and is now running at capacity.  According to Gordon, the existing dryer processes about 900,000 litres of sheep milk each year and that is expected to double in the 2019/2020 season. 

“The existing dryer has more than delivered on its original promises and is now sitting at capacity with 308 days of production in the year to June 2017, and achieving $53 million of exports in that year. We now need to be as proactive as possible and get ahead of this rapidly increasing demand from the sheep milk industry," said Gordon. 

Sheep milk and products have grown in popularity as the milk reportedly is higher in protein and calcium than milk from cows or goats and is easier to digest. 

The second drying facility will have 2.4 times the capacity of the existing dryer and will have increased levels of biosecurity that will allow it to produce high-grade infant formula and other products. It is projected to deliver $129 million in exports a year, Gordon said.  

Food Waikato is owned by Hamilton City Council and Callaghan Innovation, and both parties have been informed of the plans, he said.  

Food Waikato will contribute about $1.4 million of the $45 million cost, with debt and equity from dryer users making up the balance. Hamilton City Council and Callaghan Innovation are not being asked to contribute but are being informed as stakeholders.

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares rise as Skellerup posts record profit
NZ dollar gets lift from news Chinese delegation heading to US for trade talks
Skellerup best performing stock after annual result blows analysts out of the water
Tru-Test to sell businesses to Datamars for $147.9 million
Downer's NZ revenue jumps 59% as Hawkins makes full contribution
More ambition needed to lift productivity, home-building, Twyford says
UPDATE: Skellerup lifts annual profit 23% to a record; shares hit new high
Downer's NZ revenue jumps 59% as Hawkins makes full contribution
More ambition needed to lift productivity, home-building, Twyford says
Precinct Properties still backs Fletcher as Commercial Bay development pushed out

IRG See IRG research reports