Oceania Dairy has exceeded its supply target of 130 million litres for the first season of operation of its new Glenavy factory.A total of 46 suppliers have signed contracts with Oceania for the supply of 170 million litres in the 2014-15 season.
“Oceania Dairy is delighted with the strong support from the local farming community,” said Aidan Johnstone, Oceania Dairy Chief Executive.
“The response from local farmers has been extremely positive and their strong interest in supplying Oceania has resulted in us exceeding our target milk supply volume,” he said.
The factory will operate at approximately 65% of capacity in its first year producing 30,000 tonnes of milk powder. At full capacity, Glenavy will have an annual output of 47,000 tonnes of milk powder.
Oceania Dairy signed its first milk supply agreement for the new factory late last year with local dairy identities Aad and Wilma van Leeuwen, representing a group of foundation suppliers covering 20 individual farms.
There has subsequently been strong supplier demand from farmers in the South Canterbury – North Otago region that is Oceania’s natural catchment.
Oceania has identified farms within a radius of 50km from the Glenavy factory as its “home” collection area. “All of our milk supply contracts are with farmers within our targeted collection area,” said Aidan Johnstone.
“That includes seven new dairy conversions for the 2014-15 season,” he said.The terms of the supply agreements are for a minimum supply period of three years.
The first milk supplies are expected to be accepted at the factory in August.