The company, working in conjunction with Great South, had planned to build an oat milk factory in Southland, generating 70 new jobs after the construction phase had been completed.
But in July, the NZFF chief executive Paul Harvey announced the plant would now be constructed closer to more suitable infrastructure in Canterbury.
"We’re not expecting this change to have any impact on the financial model for our Southland growers ... our larger vision will enable the scale and efficiencies to ensure value is enhanced for all."
NZFF proposed Southland growers could transport oats to the Canterbury plant.
Federated Farmers agriculture chairwoman Sonia Dillon said she hoped NZFF would stand by their word to continue to support Southland oat growers.
"There’s a lot Southland is now missing out on ... but we can certainly push for growers to keep their position as part of the story".
Ms Dillon said she acknowledged transporting the oats was an issue, but not an insurmountable one.
Transporting products to Canterbury was expensive and always a challenge for growers, she said.
No explanation had been given by NZFF about how transport costs and the increased carbon footprint associated with transporting oats from Southland to Canterbury would be managed.
"They (NZFF) basically said they were looking to overcome these challenges so that it was pretty much a non-issue.
"They totally hear what we see as a challenge, and they believe they can find a solution. So with that in mind, hopefully, it's really good news for growers."
She was encouraged the company was looking for solutions for growers.
"But there’s nothing offered or nailed down yet," Ms Dillon said.
Mr Harvey said the company now had a larger vision and transporting the oats to Canterbury, versus the finished product, meant a more efficient business model for NZFF.
"As we will be a plant-based food company, not just an oat milk company, our vision is to bring multiple plant-based food feedstocks into the system."
Advance Agriculture managing director Howard Clarke said he believed Southland had plenty of options via its rail and seaport available to NZFF.
Mr Howard accepted the oat supply opportunity being given to growers deserved an open mind to be maintained at this point.
The high quality of Southland’s oats was a market advantage over Canterbury growers.
"Historically, because of its climate, Southland is one of the best places in the world to grow high-quality oats."
But he believed the transport costs were a genuine barrier.
The raw product’s increased carbon footprint caused by the additional transport definitely raised questions with Mr Howard.
He was incredibly disappointed the factory was being shifted to Canterbury.
Growers had only been given an expression of interest and had yet to be presented with supply terms and conditions.
"Nothing was guaranteed yet."
Mr Howard said he would welcome an inquiry into how 10 years of work from Great South’s rate-payer funded employees, would end with a plant being built in Canterbury.
Great South initially established New Zealand Functional Foods where Great South chairman Ian Collier is on the board. But K One W One Ltd owner Stephen Tindall now holds a 51% company share in NZFF and Great South 49%.
Other city leaders were also calling for a full inquiry into the sudden change of plans.
In July 2022, Economic and Regional Development Minister Stuart Nash announced the joint operation between Great South and K One W One would receive a $6million grant from the Regional Strategic Partnership Fund to help establish the plant.
The investment was part of a wider government strategy to develop a low-emissions, highly-skilled economy that responded to global demands, Mr Nash said.
Southland District Mayor Rob Scott said Southland would still have some involvement in the new business as Great South would remain a shareholder in the NZFF.
He thought it was import to remember the project had grown since its initial conception.
"It is something to reflect on for Southland, and the fact that we need to look at the legacy infrastructure and the platform that we have got here for future projects ... " Mr Scott said.
- By Toni McDonald
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