Southland site tagged for Affco dairy factory
NEW ZEALAND - Meat processor and exporter Affco is investing in a dairy factory at an Awarua site, near Bluff, which comes in the wake of the surprise announcement that the company will move into the milk-processing industry.
14 March 2007
2 minute read
Southland dairy farmers reacted to news of the potential newcomer with a "wait-and-see" approach, saying it would make Fonterra sharpen its act but it remained to be seen whether a private company would have the same commitment to farmers as a co-operative.
Others believed dairy farmers starting out or those wanting to release capital might find it an easier avenue for supply than having to invest in Fonterra shares.
Affco has formed a company, Dairy Trust Ltd, to develop, own and manage dairy plants throughout New Zealand, including three sites to be bought from Affco in Wanganui, Northland and Waikato and a fourth site in Southland.
A director of Affco, Andrew Talley, also the director of Talley's Frozen Foods, confirmed the Southland site was the Awarua block on the southern side next to meat-processing company South Pacific Meats.
Talleys, the Motueka-based frozen food and fisheries company, owns 45.9 percent of Affco and the two companies set up South Pacific Meats in 2005.
Mr Talley said the proposed site was under a conditional contract and he hoped details would be finalised by next month. A feasibility study would then follow to get a plant operating "sooner rather than later" .
Affco chairman Sam Lewis said suppliers would be brought on board after the factory was built. He knew some suppliers were already interested.
