Dairy hub decision expected this month
Our next step is to present our figures to DairyNZ and AgResearch, which we hope to do within the next 10 days.
The fate of the $26.5 million Southern Dairy Hub proposal should be decided this month.
Southern Dairy Development Trust chairman Matthew Richards said the trustees would meet industry partners DairyNZ and AgResearch ‘‘within the next 10 days’’ to present their business case.
A total of 516 farmers have pledged their support for the proposal, raising a total of $1.3m.
Richards said he was ‘‘quietly confident’’ of getting the green light to proceed despite not hitting their target of $2m in farmer pledges.
‘‘Our next step is to present our figures to DairyNZ and AgResearch, which we hope to do within the next 10 days,’’ he said.
‘‘The fact we gained the support of a majority of southern dairy farmers is a key factor in determining the hub’s future, as our partners wanted to see farmers supporting this.’’
The fact that 55 per cent of farmers between Dunedin and Bluff had pledged financial support for the proposal was a ‘‘huge endorsement’’ for the project, he said.
Under the proposal, DairyNZ and AgResearch would each tip in $10m for the hub. It would also be funded by $2.5m in proceeds from the closure of the Southland Demonstration Farm and pledges from southern farmers and businesses, with the balance funded by debt.
Richards said the trustees had already started looking for a farm to get the hub up and running.
The plan is for the hub – which would be home to about 850 cows, split into four herds – to be located in Central Southland.
‘‘The brief is to find a farm that is centrally located, with a mix of soil types and ideally some contour – it will be a sheep conversion to allow us to start with a clean slate.’’
The hub aims to be an innovation centre where ideas and concepts are tested.
It would provide southern dairy farmers with comparative research, demonstration of the research and education and training facilities, Richards said. It would also have commercial and research office buildings.
Matthew Richards