Small processors join forces

Taupo-based Miraka and Kawerau-based Waiu Dairy, both majority owned by Maori, will be sharing production facilities and market insights to boost shareholder returns.

Miraka has also announced a partnership with state farmer Pamu, one of the country's biggest dairy farmers, producing more Pamu branded products for export.

Pamu also has a cornerstone stake in Melody Dairies' $50m under construction at Waikato Innovation Park.

The partnerships will increase production efficiencies by utilising spare capacity withing each of the three processing plants to produce specialty dairy products.

A Miraka spokeswoman told Dairy News that the primary benefit is that all partners are able to share production facilities.

"This gives much more flexibility around production runs, and allows each partner to access and brand their own individual products/milk for consumer markets.

"We have complementary capability which provides more opportunities that if we were working independently, like the Waiu and Miraka powder driers are optimised for different product types and production sizes."

Production is underway and new products set for export this season.

"We are exploring a number of products that will be new to market or variations on existing products," Miraka says.

"Products will be branded under a variety of labels across the three partners. This includes specialty milks, customised processing and products with strong traceability back to the land and our farmers."

General manager of Pamu Foods Sarah Risell says the SOE is excited to be entering a new phase in its relationship with Miraka.

"Sharing Pamu's farm and production synergies with Miraka means we can be more nimble in our approach to our markets, and offer a stronger connection back to the farm - bringing customers closer to the source of their food.

"Finding commercial opportunities that harness the shared strengths of Miraka and Pamu has huge potential for both companies," says Risell.

Miraka chief executive Grant Watson says the partnership will boost specialty New Zealand products on the global market.

Miraka chief executive Grant Watson says the partnership is an incredible opportunity to work together with like-minded organisations to build the presence of specialty New Zealand dairy products in the international market.

"These partnerships will enable us to share production capacity while giving access to new customers. It also gives us flexibility to produce a broader range of niche products," says Watson.

Waiu Dairy chief executive Sam Mikaere says the partnership is a pivotal moment for the Maori dairy industry.

"We're looking forward to seeing where this will lead in the future," says Mikaere.