Miraka building UHT plant to supply China

In front of a group of top New Zealand business people, including Fonterra staff, the chairman of Miraka, Kingi Smiler, signed the deal for his company take milk from four former Crafar farms and eight local suppliers. This will be turned into high value 1L packs of UHT milk for export and distribution in China by Shanghai Pengxin. 

Smiler told Dairy News from Shanghai that Miraka will spend $25 million to build the new UHT plant adjacent to its existing milk powder factory which exports most of its product to Vietnam as part of another joint venture with the largest dairy company in that country – Vinamilk.

“The new factory will take 80 million litres a year and we hope to be delivering some of the new UHT milk to China within about ten months. The UHT milk in 1L cartons will be for the growing ‘liquid milk’ trade in China. All the packaging will be done by us at our factory.”

Because of the lack of refrigeration, UHT milk is the recognised substitute for fresh milk. Fonterra also sells UHT milk in China, but Shanghai Pengxin’s deal with Miraka is seen as a coup for the Maori venture. Also of note is that Landcorp is managing Shanghai Pengxin’s farms.

Miraka will take milk from just four of the former Crafar farms; the remainder will continue to supply Fonterra. 

Some of the farms are outside Miraka’s catchment area. Miraka has a waiting list of would-be suppliers; some them will likely pick up contracts as a result of this deal.

Smiler says the deal, which took about a year to complete, reflects the synergy between Miraka and Shanghai Pengxin.  “This is positive for Miraka and the trusts that form Miraka,” he says.