Harraway & Sons chief executive Henry Hawkins, of Dunedin, said the upgrade of its mill in Green Island was "progressing well".
Completed parts of the upgrade were the installation of a new boiler and the automation of a packing line.
An upgrade of the grain intake was about half complete.
Seismic work was about to begin, he said.
"Things are ticking along, so we are in a good space, but the seismic one is a big one, so ask me again how it is going in about six months."
The plan was to increase efficiencies and grow capacity at the mill, he said.
"It will be about two or three years before we reach that point."
The capacity growth would be gradual rather than a sudden spike, he said.
"With our good relationships and grower base we should be able to cope with that."
Canterbury farmers converting from arable cropping to run more sheep and beef was a talking point in the industry, he said.
"It will mean less wheat and barley in the ground."
A reduced supply, saddled with a poor crop in Canterbury due to weather, could apply some price pressure next season, Mr Hawkins said.
Milling trials on three new oat varieties — Gardyne, 161-1 and 5-3-9 — would continue after harvest in autumn, he said.
The new cultivars were trialled on different ground this season to double check suitability for growing and milling, he said.
A cultivar selection decision was expected to be announced after harvest next year.
Gardyne was growing well and had rust resistance in its leaves.
"That’s a very positive attribute but that’s only on one farm, so a broader base is required to get a better understanding."
Speakers included Mr Hawkins and Foundation for Arable Research chief executive Scott Champion.
Plant Research renamed a milling oat cultivar from PRL 12-10-2 to Gardyne, in recognition of the contribution of the Gardyne family to the New Zealand oat industry.
Five generations of the family have grown oats near Gore, since settling in the area in 1876.
"Oat breeding is a long-term game."
The Gardyne cultivar was looking good, Mr Gardyne said.
"There will be quite a bit of seed available for sowing this coming season."
His oat crop was looking really good for harvest from the end of March.
"The rain has been a huge help. They were starting to show moisture stress and they are looking really good now."
