Global food producer opens Tokoroa dairy plant
Saturday, 18 November 2023
Global food producer OFI (Olam Food Ingredients) has officially opened its state-of-the-art Tokoroa dairy processing facility and has already announced plans to expand the site.
OFI dairy chief executive Sandeep Jain said the opening was an important milestone and the start of an exciting journey for the business in New Zealand, which already employs around 60 local workers.
The Singapore-based company is a multi-national agricultural organisation that sources and supplies food products - such as cocoa, coffee, dairy, nuts, and spices - from around 50 countries for the global food production industry.
Jain said their Tokoroa milk processing site would produce high-quality dairy ingredients for OFI’s international customers to be used in dessert, bakery, beverage and confectionery products sold around the world.
He said strong interest from local farmers in partnering with OFI had paved the way for a second phase of investment, which would see enhancements made to the plant to develop high value dairy ingredients, expanding the range of OFI’s offering.
“Opening our new plant in the heart of New Zealand’s dairy region allows us to meet growing demand from our global customer base for high quality, New Zealand-made dairy ingredients,” Jain said.
“The plant will become part of our global network that spans major milk consumption markets including South-East Asia, the Middle East, and Africa.”
OFI’s New Zealand operations director Paul Rennie said the positive response from local farmers and the South Waikato community had been a humbling experience.
'The enthusiastic response we've received from local farmers tells us our partnership approach, and OFI’s global reputation as a leading dairy ingredients provider and innovator, has struck a chord with them,” Rennie said.
'Right from the start, our approach has always been to listen to what farmers want in a milk supply partner so we could tailor our offer accordingly.“
He said around 60 new jobs had been created in the town, including many highly skilled positions, with more on the horizon for their next phase of investment.
The new dairy factory is located on a 11.8ha site the corner of State Highway 1 and Campbell Rd and is hard to miss as you drive in or out of Tokoroa.
The company has also set up shop in an office building on Bridge St in central Tokoroa where its New Zealand administration centre is based.
Rennie said all aspects of OFI’s new plant were designed to maximize renewable energy use, minimize pollution and water use, and ensure waste was handled in the most sustainable way possible.
“We will invest in a biomass boiler fuelled by wood residue sourced from local forests to power the factory, ensuring milk processing is energy efficient and with a low environmental impact.”
“Treated waste-water from milk processing operations will be re-purposed in an on-site nursery to grow cost-price native plants to help our farmers with riparian planting.”
Alongside an attractive milk price offer, Rennie said OFI had also found innovative ways to support its farmer partners, with a focus on sustainability.
“This includes co-investment in advanced tools and technology to help farmers actively monitor their environmental impact and achieve meaningful on-farm emissions reductions.”
He said OFI was trialling a new animal feed that could help dairy farmers replace costlier and environmentally intensive feeds with a sustainable, forward-thinking alternative.
It aims to re-purpose almond hulls and shells – a by-product from its Australian orchards - into a nutritious feed for dairy cows to help cut methane emissions, lower costs and reduce waste in OFI’s almond business.
Taupō MP Louise Upston, who helped cut the ribbon at the opening, said it was a brilliant addition to Tokoroa and the South Waikato, and “an extraordinary boost to the local economy and a big stride towards our sustainability goals”.