Southland oat milk producer New Zealand Functional Foods will receive $6 million in Government funding to develop a manufacturing facility.
Economic and Regional Development Minister Stuart Nash says plant-based milk alternatives are a fast-growing segment of domestic and international consumer markets.
“The amount spent by Kiwis on plant-based milks almost tripling from $52m in 2017 to $144m in 2019 – so the demand is definitely there.
“We know that oats grow well in Southland and being low in water use, land use and emissions, they are an excellent raw ingredient for an environmentally sustainable alternative-milk option. Producing oat milk locally is a lucrative way to diversify our strength as a quality food producer.”
Read: Oat milk cementing itself as preferred dairy alternative
The investment will help provide the capital needed by New Zealand Functional Foods to build a specialised, large-scale processing plant at Makarewa, with capacity for producing up to 80m litres of plant-based milk a year.
The money comes from the Regional Strategic Partnership Fund and Nash says it’s part of the Government strategy to develop a low-emissions, highly-skilled economy that responds to global demands.
“I am confident that this new facility will add to the reputation of Southland and New Zealand as a real player in the sustainable food and beverage sector,” Nash says.
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