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The recent upgrade of the Oceania Dairy Ltd (ODL) plant in South Canterbury has boosted suppliers’ confidence, says farmer Andrew McFarlane.
ODL owner Yili Group’s investment sends “a strong signal that Yili are in our industry for the long term,” he says.
Yili, the eighth-largest global dairy processor, has built a new UHT plant, infant formula canning line, blending facilities, a whole milk powder dryer and facilities to manufacture UHT milk products and lactoferrin.
The second stage development was formally opened at an event in Auckland recently, attended by Yili owner Pan Gang.
McFarlane, who farms next to Oceania’s plant at Glenavy, says he has seen the company grow from a grass paddock to a state-of-the art milk processing plant.
A fourth generation farmer, McFarlane has been milking cows for eight years; his family owns two farms, milking 1200 cows and runs a beef operation with 500 animals.
Speaking at the opening, he says switching milk supply to ODL in 2014 freed up capital that he reinvested on the farm.
“Supplying a local company is equally important as it helps our ability to easily contact the right people,” he says.
On behalf of other ODL suppliers he thanked Yili for support during the recent seasons of low payouts.
“Some farm businesses would not have been able to survive without that support package,” he says.
Yili says the completion of the second stage takes its total investment in Oceania to more than $600 million, substantially boosting the South Canterbury economy.
Gang says his company is committed to New Zealand, as evidenced by the significant and ongoing investment in Glenavy.
Yili has also signed a memorandum of understanding with Lincoln University; Oceania Dairy’s R&D manager Dr Philip Wescombe is now based at the university to help set up a new R&D centre.
“We consider Lincoln one of the finest agricultural tertiary providers in the world and we think this joint venture will generate innovation to the benefit of Yili Group and the wider NZ dairy sector,” Gang says.
ODL general manager Roger Usmar says the company, now in its third season, has 72 suppliers.
To mark the opening Yili Group announced the launch of new premium Pro-Kido Ruihu infant formula for the China market.
Safer Farms Regional Champions are putting Crush Protection Devices (CPDs) through their paces and sharing their first-hand experiences with other farmers.
New Zealand rural apparel brand Back Country is inviting Kiwis to part ways with tired, holey socks at Fieldays with a giant 'Sock Swap Fence' inspired by one of New Zealand's iconic rural roadside landmarks.
Federated Farmers says the Government's announcement of $79 million in funding for wilding pine control marks a major breakthrough.
A recent Beef + Lamb New Zealand quad safety field day, held along the rugged Whanganui river valley at Kakatahi, focused on identifying risks and taking appropriate actions to minimise unplanned accidents.
Healthy snacking company Rockit has announced Wang Yibo, one of China's most influential celebrities, as its new brand ambassador.
Rabobank has celebrated the tenth anniversary of its AgPathways Programme, with 23 farmers from Otago and Southland gathering for two-and-a-half days to learn new business management and planning skills.

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