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Southland's being dumped as the preferred option for a new "state-of-the-art" oat milk facility as plans grow exponentially.
New Zealand Functional Foods (NZFF) had planned to build the $50m factory north of Invercargill as part of driving new industry in the region.
It was one way to help create job security in the region which is planning alternatives around the slated closure of the Tiwai Point aluminium smelter near Bluff.
"The original vision... was to build an oat milk plant, something that would have been exciting for Southland and New Zealand," NZFF chief executive Paul Harvey said.
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"However through extensive global engagement that vision has grown significantly and we now foresee an opportunity for NZFF to be world leaders."
The new start-up company is now eyeing up Canterbury as a potential location instead.
"For the success of this greater vision, it is vital that our planned manufacturing base is in the location that allows easy connection and collaboration with industry and infrastructure.
"This led us to the tough decision to move our planned manufacturing location from Southland," Harvey said.
It was only a year ago this month that then Minister for Regional Development Stuart Nash was in Invercargill announcing a $6m Government-backed loan for the project from the Regional Strategic Partnership Fund.
The $200 million fund aims to grow regional economies by helping people develop projects specific to their communities.
At the time, Nash 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.
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"We believe [we are] on the cusp of delivering something truly unique, a plant-based food eco-system that will connect significant future food activity," he said.
It's somewhat a blow for the Southland regional development organisation Great South, who were pioneering the idea for 10 years to have the operation out of the lower south.
Great South chairman Ian Collier told 1News: "Whilst our own focus at Great South will always be on Murihiku Southland, as shareholders we fully support NZFF and its vision to lead the development of-plant based products.
"Having evaluated all the options open to us during this important phase of the project, we understand and support the rationale for the potential change of location," he said.
Many of New Zealand's oats are grown across the province with the facility having the potential to grow the local economy further.
But NZFF believes it's not all bad news for the Deep South.
"We believe this will showcase Southland's world leading oats and innovation on a far bigger platform than just as a standalone oat milk brand or business as was initially envisaged.
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"The Southland story will be a key part of our future and we have strong intention to continue to partner with growers across the region," Harvey said.
1News has contacted the Government for comment.
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July 19, 2023 at 09:40AM
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'Tough decision': Southland loses oat milk factory development - 1News
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