Olam food ingredients (ofi), a global leader in naturally good food and beverage ingredients, has started planning the next phase of capacity investment at its Tokoroa dairy plant for the production of specialized and high-value protein-based dairy ingredients.

“Local farmers have shown a strong interest in supplying the plant. Our intention when we started our investment in Tokoroa was to add additional facilities over time, and we are pleased to be progressing with our plans for this. When construction of the current dryer is complete, we aim to enhance its capability so we can produce specialized protein ingredients with a higher value, in addition to whole milk powder, so that our farming partners can benefit from higher returns in time,” said Paul Rennie, operations director, ofi, New Zealand.

When complete, the plant will be able to produce whole milk powder, and protein concentrates for ofi’s international customers and to serve the growing nutritional industry.

“Demand for protein-based ingredients is growing, and our customers’ response to this new opportunity to secure specialized ingredients from New Zealand’s high-quality milk pool has been very positive. We have also offered the customers who will be buying these ingredients the opportunity to partner on sustainability initiatives in New Zealand, which we expect to create further value for our local farmers,” said Sandeep Jain, managing director and chief executive officer – Dairy for ofi.

“We are excited to be adding more New Zealand-sourced ingredients to our existing product portfolio and helping our customers turn those ingredients into tasty, nutritious, sustainable, and convenient dairy products across many categories,” said Naval Sabri, senior vice president, ofi.

Protein concentrates are typically used in sports and adult nutrition and a range of food and beverage applications, such as high-protein beverages and energy snack bars.

ofi is on track with its milk supply needs, with interest from farmers expected to grow as the investment for its next stage progresses.

“We expect this new investment will help us grow the value of our milk, which creates an opportunity to return value over time to our farmers as well, in line with our global commitment to producing ingredients in a way that’s socially responsible, economically profitable and environmentally sustainable,” Rennie said.

Construction of the stage one investment is progressing well and remains on track for commissioning in the second half of 2023.