Open Country Dairy (OCD) has started work on a new plant that will increase its processing capacity in Waikato.

The country’s second largest dairy processor will build the factory at Horotiu, near Affco’s meat processing plant. Both OCD and Affco are owned by agribusiness company Talley’s Group.

OCD chairman Laurie Margrain confirmed that activity had begun on the site but was tight lipped about the factory’s details.

“I can’t confirm the details, we’re keeping many of our options fluid, we are building processing capacity and the exact nature and type of that capacity to some extent is not yet confirmed, some parts are and some are not.”

The site would create new job opportunities for the region, but it was too early to say how many as that would depend on the factory’s final configuration’s. It would also mean OCD can take on more Waikato suppliers.

Margrain said the factory was being built because OCD had been short of capacity in Waikato for some time.

“We have taken a very calm and pragmatic view about when we should extend capacity in the Waikato in terms of what conditions the market was in and what condition the industry was in and because we are very prudent in how we invest capital, we have taken our time in making these decisions.”

NZ Farmer

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