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Kiwi Company, Westland Milk Products has set its eyes on the global butter market by investing $40 million to increase its production capacity.
Source: © Squareplum | Megapixl.com
Based in Hokitika, Westland is one of the country’s leading dairy firms and since 2019, it is owned by the Chinese firm, Inner Mongolia Yili Industrial Group Co Ltd.
Project Goldrush
Through ‘Project Goldrush’, Westland is planning to enhance its factory at Hokitika so as to augment its butter manufacturing unit two times i.e. from the current capacity of 20,000 tonnes to 42,000 tonnes per year to make Westgold, the preferred consumer brand butter across the globe.
Westland To Cash In the Increased Demand
This strategic move, duly considered by Westland for the past 5 years, was a slow transition from being a bulk dairy commodities manufacturer to consumer products manufacturer. The Company is at present supplying butter to more than 20 countries.
Nonetheless, it wants to cash in on the increased demand for the grass-fed butter, which is continuously climbing up across the globe, especially in the countries like US, Australia, China, and Japan.
Moreover, Chinese buyers are continuously looking for diversified butters to be used in various food applications like cooking, baking and dessert making.
With enhanced capacity and investments, the worldwide sales are expected to grow from the present $63 trillion to $84.5 trillion by 2025.
About Westland Milk Products
New Zealand is known for its quality dairy products across the world. Chinese dairy jumbo, Yili Group bought Westland in 2019 for $588 million and completely backs its plan for being the world’s leading consumer goods supplier. Presently, around 409 dairy farms supply milk to Westland.
Overhauling Of the Manufacturing & Packaging Capacity
In order to achieve the dream, the Company has installed 2 German manufactured churns in place of an existing churn, which was commissioned in 1978. This will increase quality control and at the same time focuses on an effective production capacity.
Moreover, Westland plans to lodge new packaging lines as well as establish an improvised palletising system, which provides enhanced efficiency and different stacking combinations to suit varied international markets.
The construction and other site works are likely to commence in May 2021 and shall continue for 3 months, stated Richard Hickson, Westland’s Chief Operating Officer.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)
