Gardians (Greenfields, Agricultural Research, Dairy Innovation and Nutritional Systems) is a joint venture between Dunedin-based dairy farmer Grant Paterson and Auckland-based food packaging group Sutton Group.
In a statement yesterday, the company said resource consents had been obtained and construction was under way on a 4ha site near Balclutha. It was on schedule to be fully operational by July next year.
A "top of the line" European spray drier would be used to finish the product, which would then be sent to Sutton Group for packaging.
The venture enabled both families to realise the potential of a global market that had both the desire and the demand for a range of premium dairy nutritional products that had "absolute traceability", with guaranteed integrity through the dairy chain from "grass to glass".
It encapsulated the essence of "Brand New Zealand" and recognised the world was becoming a more discerning place, where both brands and consumers were demanding traceability of their end products, especially in ranges as sensitive as infant formula and early developmental nutritional products, Gardians spokeswoman Rachelle Sutton said.
When contacted, Ms Sutton said the cost of the development would not be disclosed. It would employ about 35 people.
The Paterson family has been a long-time player in the dairy industry as a major milk supplier, while Sutton Group has built a total nutritional solutions business serving the dairy and wider food and beverage industry.
A resource consent application, filed with the Clutha District Council by Big River Dairy Ltd, of which Mr Paterson was listed as director, said the company was proposing to establish a new dairy processing plant on a dairy farm on Craig Rd, near Clydevale.
It consisted of a milk powder plant with the capacity to process up to three tonnes an hour of skim milk powder, thermal plant and wastewater storage and disposal system.
It would operate up to 24 hours a day during the peak of the season, from the end of September until the end of December.
It would be shut down during the majority of June and July for the first few years of operation.
In later years, it was possible it might work during June and July on specialist products.
The application said the positive benefits to the district would be significant, with "numerous" jobs for local people created at the plant and many additional jobs created in the associated service industries.
Big River Dairy Ltd was a fully owned New Zealand company that wanted to see profits retained in New Zealand and "not disappear overseas". The project could only be viewed as a "win-win" for the district, it said.
