The country's second biggest dairy company, Open Country, predicts significant growth in its milk supply and powder production this season, despite the dry summer conditions.
Dairy paddocks in Southland (file photo) Photo: SUPPLIED
Open Country, which is 70 percent owned by the Talleys Group, operates three plants in Waikato, Southland and Wanganui, processing well over a billion litres of milk a year. It estimates it has a five to seven percent share of the national production.
Nationally, milk production is running about one percent behind last season and, for Fonterra, it's closer to three percent lower.
Open Country's chairman, Laurie Margrain, said its milk supply would also be down slightly on what it expected.
"But the amount of milk we'll process this year will be considerably up on what we processed last year, so a higher number of farmers, a higher processing capacity.
"We've now doubled the size of Awarua in Southland. That new drier came onstream in September and we're currently constructing a second drier to double the size of our Wanganui plant."
Mr Margrain would not say how many farmers were supplying Open Country now, but he said the numbers were growing each year and there was a waiting list.
The milk powder and cheese processor achieved a record financial result last year, lifting its annual profit by two-thirds to almost $29.8 million, and forecast another strong result this year.
