Business South November 2021

30 | A history steeped in excellence Expansion has taken place on the existing site on Chelmer Street, Oamaru, with powder, cheese and butter processing capabilities boosted. Oamaru: Milligans Food Group REGIONAL DEVELOPMENT I t’s one of the grand old brands of the South Island - Milligans Food Group - which started out as a flour mill in North Otago in 1896, and expanded over the succeeding 125 years into a nationwide supplier and manu- facturer of consumer food ingredients and products. Milligans’ Eclipse Flour dominated the New Zealand market for more than a century, and the old firm has been in expansion mode since being acquired by Bruce and Dale Paton more than 30 years ago, and now day-to-day operations are overseen by their son Joseph Paton. Until about four years ago Milligans was op- erating a predominantly food service business but is now working towards a 50/50 mix with retailing, in which demand has strengthened particularly since the Covid outbreak. “People are staying at home, and trying more creative tastes,” Joseph Paton says. The Patons have adapted the Eclipse brand to the dairy products which now make up a large percentage of the company’s product offering. That range covers dairy powders, dairy proteins, cheeses, butters, specialised dairy ingredients and soft-serve blends to retail, food services and manufacturers. The flour-milling operation, 20kms west in the small township of Ngapara, was moth- balled in 2016, but could be resurrected if needed. Expansion over the last few years has taken place on the company’s existing site on Chelmer Street, Oamaru, with powder, cheese and butter processing capabilities boosted there. With no more room for further expan- sion on Chelmer Street, MIlligans bought land T Hugh de Lacy in the Oamaru Business Park, and now occu- pies three linked buildings totalling 15,000m2. As well, the company has owned and operated a warehouse and distribution site in Auckland to service its North Island custom- ers. That facility too has been outgrown, and planning is under way to double its size to 4000m2 and add a manufacturing capacity. The company is also presently awaiting the delivery of new machines from Europe to establish three new butter-packing lines. The branding of Milligans’ outputs entered a new phase in 2004 when the company acquired the Granny Faye brand for its non-dairy products, manufacturing sauces, seasonings, breadcrumbs and batter mixes for both home and commercial use in a range of quantities. The dressings range, for example, is availa- ble in 365g, 1kg, 2kg, 5kg and 10kg packages. Three years after the acquisition of Granny Faye’s, the company added the iconic Frosty Boy range of soft-serve and milkshake-related goods that have long been a staple offering of corner dairies. Its nationwide New Zealand business aside, Milligans operates a robust export sector with about a third of its output going by sea to Australia, the Pacific Islands, the United States and Asia, with an increasing amount to Dubai. Running a national manufacturing and dis- tribution network from North Otago requires a sophisticated transport network, and for the South Island that comprises a trio of cur- tain-sider trucks. But the big boon for the Oamaru location is the loyalty and reliability of the staff, Joseph says. “We’ve got a really solid workforce, with many of our staff being with us for 15 years, and some for over 25. “It’s the North Otago lifestyle that attracts and keeps people here.” Come in and see us for: • Structural Engineering • Plasma Cutting • Maintenance & Repair to farm equipment • Sheetmetal Fabrication • All your engineering retail needs, from Bearings & Oils to V-Belts & Welders 03 434 9084 | 3 Korora Road, North Oamaru Business Park