Since 2016, Southland farmer and Garston Hops co-owner James McNamee had been planting hops at his family’s sheep farm.
"Our flavour is unique and in demand but there are no local processing facilities.
“At the moment Southland's hops are harvested and processed in Garston and then shipped to Nelson for pelletising, which adds additional cost to the final product.”
Mr McNamee, with support from Great South, applied to the government’s Regional Strategic Partnership Fund, administered by Kanoa, to build a processing plant facility in Garston where his company and other farmers could process their hops.
His bid was approved and Garston Hops was offered a $2.5m government loan.
The idea was to create a hops hub in the region, he said.
"This means we can build a Southland story around our hops.
"Other farmers can grow hops, and local craft brewers can make distinctive Southland beer."
Barley, one of the other main ingredients in beer, is commonly grown in Southland, which could create even further opportunities for the region.
"Hopefully this will draw more people to the area and create jobs."
Business administrator Lizette McNamee said they planted 15ha of hops.
She said the loan would help them to achieve their goals and increase the planting.
Great South chief executive Chami Abeysinghe said hops were an ideal new industry for Southland.
"We’re very focused on supporting sustainable industries and hops fit well with that, being a high value, low weight export product and being right next to the Around the Mountains Cycle Trail, there will also be great spin-off tourism opportunities."
