FoodWaikato Invests $7 Million in Colostrum Processing Expansion, Offering Profitable Sideline for Farmers
Source: DairyNews.today
FoodWaikato, based at the Waikato Innovation Park in Ruakura, is undergoing a $7 million upgrade to its spray dryer, aimed at significantly expanding its colostrum collection and processing capabilities. This development presents a lucrative seasonal opportunity for farmers, especially as dairy farms across the country enter the calving season.
The revamped spray dryer will enable the plant to efficiently break down colostrum, extracting the most bioactive components for high-value nutraceuticals and food supplements targeting gut health, according to FoodWaikato CEO, Trevor Lock. South Auckland-based New Image Group (NIG), the plant’s owner, will lead the production of these supplements, with full-scale operations expected to commence in 2025.
“We’re shifting from just dietary supplements to true nutraceuticals,” Lock said, adding that a $4.5 million research and development program is already in place to back the efficacy claims of these products.
To meet the growing demand, FoodWaikato is aiming to secure 100 farmers as colostrum suppliers by next year and is exploring the feasibility of collecting colostrum from farms that practice autumn or split calving. The high-demand market for colostrum-based products has opened new revenue streams for farmers, as Lock explained, particularly with the exit of the U.S. as a major global supplier.
Lock highlighted the challenges of processing colostrum, noting its high viscosity and the complexities involved in collection and drying. “It’s very difficult to make, but the market demand is enormous,” he said, emphasizing New Image’s position as one of the world’s largest colostrum users outside the U.S.
The current upgrade has already led to the hiring of additional staff, with the factory now operating 24/7, producing up to 500kg of colostrum per hour. FoodWaikato also processes nutritional formulas and goat’s milk products, and with the upgrade, it plans to expand into more specialized milk ingredients.
The financial incentive for farmers is significant. Payments for colostrum are determined by its immunoglobulin G (IgG) levels, with higher concentrations commanding up to $3.35 per litre. On average, a farmer with 600 cows could earn $25,920 over six weeks, with some farmers expected to exceed $100,000 in earnings.
In addition to colostrum processing, FoodWaikato’s upgraded facilities will also be available for testing and producing new dairy products during off-peak seasons. This strategy not only secures steady income for farmers but also provides supply chain security for niche products like goat’s milk.
The company, which was put into liquidation last year, has turned around its operations under New Image Group’s ownership, transitioning into a profitable venture and establishing itself as a key player in the global colostrum market.
With its ambitious expansion plans and a renewed focus on high-value nutraceuticals, FoodWaikato is set to become a pivotal player in the dairy processing industry, offering farmers a profitable and sustainable sideline.
“We’re shifting from just dietary supplements to true nutraceuticals,” Lock said, adding that a $4.5 million research and development program is already in place to back the efficacy claims of these products.
To meet the growing demand, FoodWaikato is aiming to secure 100 farmers as colostrum suppliers by next year and is exploring the feasibility of collecting colostrum from farms that practice autumn or split calving. The high-demand market for colostrum-based products has opened new revenue streams for farmers, as Lock explained, particularly with the exit of the U.S. as a major global supplier.
Lock highlighted the challenges of processing colostrum, noting its high viscosity and the complexities involved in collection and drying. “It’s very difficult to make, but the market demand is enormous,” he said, emphasizing New Image’s position as one of the world’s largest colostrum users outside the U.S.
The current upgrade has already led to the hiring of additional staff, with the factory now operating 24/7, producing up to 500kg of colostrum per hour. FoodWaikato also processes nutritional formulas and goat’s milk products, and with the upgrade, it plans to expand into more specialized milk ingredients.
The financial incentive for farmers is significant. Payments for colostrum are determined by its immunoglobulin G (IgG) levels, with higher concentrations commanding up to $3.35 per litre. On average, a farmer with 600 cows could earn $25,920 over six weeks, with some farmers expected to exceed $100,000 in earnings.
In addition to colostrum processing, FoodWaikato’s upgraded facilities will also be available for testing and producing new dairy products during off-peak seasons. This strategy not only secures steady income for farmers but also provides supply chain security for niche products like goat’s milk.
The company, which was put into liquidation last year, has turned around its operations under New Image Group’s ownership, transitioning into a profitable venture and establishing itself as a key player in the global colostrum market.
With its ambitious expansion plans and a renewed focus on high-value nutraceuticals, FoodWaikato is set to become a pivotal player in the dairy processing industry, offering farmers a profitable and sustainable sideline.
23.09.2024
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