Economic and Regional Development Minister Stuart Nash Minister Stuart Nash visited Invercargill today where he met representatives from Southland-based oat milk producer New Zealand Functional Foods and announced the investment from the Regional Strategic Partnership Fund.
Mr Nash said the initiative was the perfect fit for the Regional Strategic Partnership Fund, which aims to help build more productive, resilient and sustainable regional economies.
The investment would help to build a specialised, large-scale processing plant at Makarewa, with capacity for producing up to 80 million litres of plant-based milk a year, he said.
“Plant-based milk alternatives are a fast-growing segment of domestic and international consumer markets, with the amount spent by Kiwis on plant-based milks almost tripling from $52 million in 2017 to $144 million in 2019 - so the demand is definitely there.
“We know that oats grow well in Southland, and being low in water use, land use and emissions, they are an excellent raw ingredient for an environmentally sustainable alternative-milk option.
"Producing oat milk locally is a lucrative way to diversify our strength as a quality food producer."
Southland did not have the appropriate processing facilities to domestically produce the volumes of oat milk required.
“I am confident that this new facility will add to the reputation of Southland and New Zealand as a real player in the sustainable food and beverage sector,” Mr Nash said.
