Oceania Dairy Glenavy facility

Oceania Dairy, a subsidiary of Yili Industrial Group (Yili), constructed a new dairy plant approximately 4km from Glenavy, in the South Canterbury region of New Zealand. Parent company Yili invested around $236m in the project.

"The factory is expected to reach full capacity by 2019."

The facility produces a range of milk powders such as standard whole milk powders, speciality powders and infant formula. The product portfolio includes whole milk powder, skimmed milk powder, infant formula, speciality powders and AMF milk powder.

Construction works began in April 2013 for the multi-stage development project. The first stage was officially opened in November 2014, giving the plant 60% operational capacity. The project generated more than 70 permanent jobs.

Oceania Dairy obtained the resource consents for the construction of the milk processing factory from the New Zealand Government in February 2010.

Details of the Glenavy milk factory

The Glenavy milk factory site covers a total area of 38ha, 12ha of which was used for the construction of the processing plant.

The dairy plant initially processes 220 million litres of milk to produce milk powder, which is supplied to Yili for producing infant formula. The factory is expected to reach full capacity by 2019 and will process around 630 million litres of milk a year. The plant will create 150 more jobs, once fully operational.

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The facility features a 47m-tall milk powder dryer tower, which has the capacity to produce 10t of milk powder an hour. A 30MW coal-fired boiler, which is capable of producing approximately 42t of steam, was also installed. The drystore of the milk processing plant has a storage capacity of 3,600t.

A separate electricity substation was constructed at the project site. Alpine Energy carried out 11kV and 33kV electricity supply works for the project.

An additional slip lane, turning lane and lighting facilities were built at the State Highway 1 intersection linking the facility in order to cater to the increase in frequency and size of vehicles using the highway.

Construction of Oceania Dairy’s new milk processing facility

Ground works at the site started in April 2013. Construction of the building structures began in July 2013. Installation of the dryer and the calandrias in the 47m dryer tower was completed in February 2014.

The final boiler components and generating bank reached Timaru port in February 2014 for assembling. The final boiler components and generating bank were transported to the factory site in Glenavy.

Other project works included the construction of a drystore, site offices, services building integrating refrigeration works, a water treatment facility, a wastewater treatment facility, and on-site road connection facilities.


Babbage Consultants was contracted to act as the project manager and lead consultant for the project. The scope of the contract includes coordinating with civil, structural, electrical, mechanical, process engineers and contractors from the beginning to end of construction on site.

Ebert Construction was awarded a $40m construction contract for the drier and evaporator building, four-bay covered tanker reception, silo slabs, wet process and ingredients areas, packing and palletising areas, the amenities building and the dry store.

Oceania Dairy milk supply agreements

Oceania Dairy signed a milk supply agreement with Aad and Wilma van Leeuwen, which represents 20 individual dairy farms, in December 2013. Oceania Dairy further entered into supply agreements with 48 local farmers to deliver around 220 million litres of milk for the new facility during the 2014-2015 season.

The contract for the milk collection was awarded to Hilton Haulage, which employs trucks with 15,000l and 23,000l tank capacities.

Sustainability measures

The wastewater discharged from the water treatment plants on the site is treated and moved to the neighbouring 300ha of local farmland.