Fonterra may have forced a change to its name, but backers of a new milk processing company planned for Glenavy say they are on track for a 2011 start.
Tim Howe, a director of Oceania Milk Company, formerly known as New Zealand Milk, said the company was forced to change its name by Fonterra which previously had a business arm of that name.
Oceania Milk was preparing a resource consent application to build a factory near Glenavy on the north bank of the Waitaki River, which was centrally located to source milk from the expanding dairy industry on the plains, Mr Howe said.
Falling international dairy prices did not curb the fledgling company's enthusiasm or optimism, with Mr Howe adding that a niche player had better control of costs and could supply selected markets.
The company has had support from investors with cash and farmers wanting to supply milk.
Banks still "had an appetite" to invest in dairy companies.
He would not state how much the development would cost, saying that depended on final design plans, but the New Zealand Dairies milk processing plant at Studholme, up the road from Oceania Milk's proposed site, cost more than $100 million.
Oceania Milk has some powerful backers with the board including former Reserve Bank governor and National Party leader Don Brash and former Meridian Energy chief executive Keith Turner.
