ofi expands milk handling capacity at its Tokoroa dairy plant

NEW ZEALAND – olam food ingredients, Olam Group’s wholly owned subsidiary, has announced plans to expand its milk handling capacity and install a second spray dryer dedicated to producing Milk Protein Concentrate (MPC)—a versatile ingredient used in sports nutrition, functional beverages, and medical formulations.

According to the company, the investment will not only boosts its production capabilities but also reinforces its commitment to delivering premium dairy solutions to customers worldwide.

Additionally, the newly commissioned biomass boiler is also supplying over 90% of the steam needed for current operations, reinforcing the sustainability goals.

“Together with our dedicated Waikato dairy farmer partners, and the wider Tokoroa community, we are proud to enhance our offering of high-quality dairy ingredients to customers around the world,” the company stated.

Ofi Group officially opened its cutting-edge dairy processing facility in Tokoroa, New Zealand, in 2023. The facility’s first stage includes a sophisticated spray-dryer unit designed to produce high-value milk powder ingredients for a variety of applications.

OFI has strategically positioned the Tokoroa site to cater to the growing demand for New Zealand-made dairy products in export markets, particularly in dessert, bakery, beverage, and confectionery sectors.

The positive response from local dairy farmers has prompted OFI to initiate a second phase of investments, expanding the range of products offered at the facility.

Operations director Paul Rennie expressed gratitude for the overwhelming support from the local community and farmers, emphasizing OFI’s commitment to listening to farmers’ needs.

“Our approach has always been to listen to what farmers want in a milk supply partner so we could tailor our offer accordingly,” he stated.

Managing Director and Chief Executive of Dairy, Sandeep Jain, highlighted the strategic importance of the new plant in meeting the growing demand from OFI’s global customer base.

“Opening our new plant in the heart of New Zealand’s dairy region allows us to meet growing demand from our global customer base for high quality, New Zealand-made dairy ingredients,” Jain stated.

Rennie outlined the plant’s commitment to sustainability, incorporating features to maximize renewable energy use, minimize pollution and water use, and handle waste sustainably.

The facility includes a co-investment in advanced tools and technology to help farmers actively monitor their environmental impact and achieve on-farm emissions reductions.

“We will invest in a biomass boiler fuelled by wood residue sourced from local forests to power the factory, ensuring milk processing is energy efficient and with a low environmental impact,” Rennie added.

“The wastewater from milk processing will be repurposed in an onsite nursery to grow cost-price native plants, supporting farmers with riparian planting.”

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