$50m plant for sheep milkers

Players in the burgeoning sheep milk business are investing $50 million in a new plant in Hamilton for an expected doubling of the industry within three years.

Four companies have formed Melody Dairies to jointly finance and build a second spray drier at the Waikato Innovation Park, with building to start by the end of the year.

The plant is expected to deliver $129m in export returns a year, said Innovation Park chief executive Stuart Gordon.

The investors are Nu-Mega Ingredients, owned by Australian company ASX-listed Clover Corporation (35 per cent), Landcorp Farming (35 per cent), Dairy Nutraceuticals (20 per cent) and Food Waikato (10 per cent).

Clover Corporation chief executive Peter Davey said the investment will help his company meet fastgrowing demand for its infant formula and functional food markets.

For Landcorp, the investment helps implement its Pamu Farms of New Zealand brand strategy, particularly its joint venture with the Spring Sheep Milk company, said Gordon.

Spring Sheep Milk is a boutique nutrition company which exports high-value branded food products made from sheep milk.

New Zealand-based Dairy Nutraceuticals, established in 2016, had recently built a blending and packing plant in Auckland, said Gordon.