Dunedin oat miller Harraway & Sons binned an idea to end its more than 150-year history operating in the city and opted to invest $11 million to give its existing facility a facelift.
Shareholders agreed to invest the money over the next three years at the Green Island mill, chief executive Henry Hawkins said.
A new machine to automate the packing of its oat sachet products was due to arrive on December 1.
The following week, a new boiler would arrive.
A grain intake would be upgraded and some silos would be removed and replaced before Christmas.
Further site refurbishment work would begin in January next year.
"The end of this year and all of next year will be a very busy time for all of us," Mr Hawkins said.
The projects signalled growth of the business in Dunedin and its commitment to continuing being an employer in the region.
"We have been here since 1867. There was a lot of discussion around if we needed to move to grow."
The talk was about moving the mill closer to its grain growers, somewhere between Dunedin and Gore, but a decision was made by shareholders to stay in Dunedin.
"It was a sensible move. It is where our roots are," he said.
Staff numbers would not be impacted by the installation of any new automation, Mr Hawkins said.
The new automation would allow the company to meet demand from its customers.
Sales had been strong at Harraway & Sons since Covid-19 arrived in New Zealand.
After the pandemic, people had shown greater support for New Zealand-made products and for eating healthy, affordable food, he said.
"Oats are part of that. We’ve done well since that time."
Sales peaked during winter and softened in summer.
About 95% of the oats milled at the site were grown in Southland and Central Otago.
Crops had been sown later than usual this season due to strong winds, but the growing season should be good, he said.
A milling trial to select a new oat cultivar was ongoing, but the nutritional data was stacking up, he said.
"We are highly likely to make a change. All of the cultivars are looking promising."
The trial was harvesting data on the yields on farms of each cultivar.
A commitment to a new cultivar could be expected next season or the one after.
The owners of Harraway & Sons were proud to be part of the South, Mr Hawkins said.
"A little ol’ New Zealand company, competing against global brands for shelf space is a great story for Dunedin and our growers, who work bloody hard."
Marketing and product innovation head Peter Cox said Harraway & Sons had doubled its market share in oat sachets in the past five years.
For bigger bags of oats, Harraway & Sons had about 45% of market share in New Zealand.
At the New Zealand Food Awards in Palmerston North last month, Harraway & Sons won a Product Lifetime Achievement Award for its rolled oats.
The team was thrilled to receive the award, Mr Cox said.
“This is also a win for our valued farming partners in Otago and Southland.
"With trusted supply partnerships going back generations, these farmers harvest the finest quality, New Zealand grown oats."
In a statement, the judges said Harraways Rolled Oats was a truly iconic New Zealand product, which had stood the test of time.
"It has held its place through quality, consistency and trust, becoming a staple in Kiwi households and a symbol of wholesome simplicity. Generations have grown up with Harraways, and its enduring presence reflects both the strength of the product and the dedication of the people behind it."
