76 | nzdairy RURAL SERVICES » Olam Food Ingredients: Tokoroa Processing Plant Listening to farmers key to ofi success Richard Loader In August of 2023, Olam Food Ingredients’ (ofi) new high-tech dairy processing facility in Tokoroa received its first milk supply from the region’s farmers, with the first export product of high-value whole milk powder delivered to wharf in November. Located in South Waikato, the heart of New Zealand’s dairy country, on an 11.4-hectare site, the facility took two years to complete, with GEA partnered as the primary contractor. The first stage of the facility is a spray-dryer, with the capacity to produce 45,000 tonnes of whole milk powder a year, exported for dessert, bakery, beverage, and confectionary products. At peak the facility processes a little over a million litres of milk each day at very high speeds, drawn from dairy farms in the South Waikato district. Operations Director Paul Rennie says the spray drying facility has established a solid foundation on the site, with planning for the next phase well advanced to meet a growing preference for the region’s farmers to become suppliers. “During the 2023 – 2024 season our milk collection had an average radius of 61 kilometres from the site. We’re now heading into the second season of milk acquisition which will see the facility full and there are indications that the radius is coming in. That tells me we did pretty well in the first season, commissioning and operating the plant, and listening to our farmers. The milk supply team has done a great job in terms of following up with the potential created through the first season.” Paul acknowledges that a key to ofi’s success was early discussions with farmers in the region and carefully listening to what they wanted from a milk processor. “Farmers wanted a genuine business partnership and they wanted the confidence that we would do what we said we would do. Partnering is about continuing to listen to what farmers want to achieve. We pay a competitive milk price, and advance rate. We’re very sensitive to the farmers need for cash flow, and that has become even more important in recent years. First milk: Paul Rennie (left) with Paul Johnson (General Manager Milk Supply) with the first bags of whole milk powder. • to page 78 The Olam Food Ingredients (ofi) team.
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