28 | Awarua expansion trebles plant capacity Open Country is the second largest exporter of whole milk powder in the world. from page 26 REGIONAL DEVELOPMENT Southland: Open Country Dairy Suppliers key - page 30 Proud to support Open Country Dairy www.ewl.co.nz | 03 218 7263 | 93 Clyde Street, Invercargill WE ARE THE SOUTHLAND DISTRIBUTOR FOR THE BELOW INDUSTRIAL BRANDS: 100%SOUTHLAND OWNED AND OPERATED Originally established to produce milk powder, the founders’ vision was to create a strong and credible competitor to existing processors in New Zealand, a goal which CEO Steve Koekemoer says has been achieved. “We have grown to be quite a successful business in the industry, and across our North and South Island facilities we are the second biggest milk processor by quite a large margin, processing approximately two billion litres of milk each year. Open Country is in fact the second largest exporter of whole milk powder in the world.” The company’s growth has been undertaken on the same site in Awarua, enabling operational efficiency and a broader product mix to ensure the business remains competitive for the region’s supplier farmers. The business has also been on a quest to minimise its environmental footprint and when its third drier was built in 2019 the decision was made to install a large electrode boiler, which acts like a supersized kettle creating steam for the drying process. “In Southland you are quite limited to energy options and there is no natural gas here. Southland electricity is a clean renewable energy source and so we decided to put a large electrode boiler in, which uses electricity to generate steam. It is the only one that I’m aware of that generates steam for a milk powder drier. Since installing it two years ago it has exceeded our expectations. “Our goal is to transition to similar low emission energy options for all our milk drying processes in the coming years. We’re currently working with partner energy supply companies to see what we can do to get sufficient electricity supply to Awarua, to enable that transition. We have also had great support from ECCA, as we make the transition to renewable energy.” Open Country Dairy uses state of the art and highly automated technology for the production of its high-quality milk powders, and with very limited human intervention. Describing a complex process in simple terms, Steve explains that when the milk arrives at the processing facility by tanker it goes into large silos and through a standardising process. “The milk’s fat and protein composition varies throughout the season, but the end product received by the customer must always be the same, so the milk has to be standardised to ensure a consistent composition. “The milk normally arrives from the farm gate as 13% solids and the rest is water. So, after being standardised, the milk is run through the evaporators to take a lot of the water out, and concentrated up to 54% solids — a very thick consistency resembling condensed milk. “It is then squirted into the top of the spray driers through nozzles, with a lot of hot air coming down the spray drier at the same time. As the thick milk particles hit the hot air it starts to dry off into a powder, goes into a powder bin, gets packed into 25kg bags, robot palletised and is ready for export.” Utilising very compact and highly efficient drying technology, the Southland dairy processor has earned a reputation on the global stage for being one the most efficient operators, if not the most efficient, in respect to its product range; something Steve says the company is very proud of. The diverse range of powders include skim milk powders, whole milk powders, instantised powders, and vitamin fortified powders for certain customers in specific markets. “Milk powder is just a way of getting high quality fat and protein off-shore, that people can rehydrate and use in very nutritious food products. “Some of the powders are used for repacking. Markets like the Middle East, where there is a lack of dairy but the need for a source of nutrients, would buy a powder that has vitamin fortification and is instantised. It dissolves very quickly in water, tastes really good and is very nutritious. So those 25kg bags are repacked into branded cans at market, and distributed through the country. That is quite common. Or the powder might get used as a food ingredient. We supply product to about forty-five countries. Some of our key markets include China, Middle East, North Africa and South East Asia. We have also been successful in diversifying our target markets across the globe, so that we are not reliant upon any specific market.” At the same time Open Country Dairy built its third drier it also built the AMF facility to and get more flexibility in its product mix. AMF is produced by taking cream from the milk and running it through a process that concentrates it to become 99% milk fat. Resembling an oil base, it is put into drums, and exported for use in food production where a source of animal fat is required. Open Country Dairy employs a highly skilled and stable workforce, with many team members having served with the company from the very beginning. To support its growth over the years, the company has quadrupled its workforce, providing more opportunities within the community and its existing team. “We are continually training and developing our staff. As we have expanded the facility the people on the shifts develop and grow their skills, with more junior team members coming in behind them.” Looking forward to a positive future, Steve says Open Country Dairy’s future lies in investing in enhancing its environmental footprint, and finding new products that drive better value for our shareholders and farmers. “Southland electricity is a clean renewable energy source and so we decided to put a large electrode boiler in, which uses electricity to generate steam.”
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