Bakers prefer butter, helping prices soar
Consumers around the world are willing to pay more for products containing dairy and this is driving demand for butter and cream, says Fonterra.
If approved, the project will see the Westland District Council upgrade its water treatment plant at Blue Spur, Hokitika. The council would raise a five-year loan to fund the construction but recover 100% of that cost via a targeted water rate charged to Westland Milk Products.
Westland chief executive Rod Quin says the dairy cooperative's continuing increases in productivity means its demands for water have significantly increased.
"In 1968 when Westland Milk Products began processing on its current Hokitika site, our requirement for potable water was in the tens of thousands of litres per day. Today, at peak season, we require five million litres per day."
By 2020, Quin says, Westland's continued growth will mean that the company alone will require seven million litres of potable water per day. When combined with the town water volume, the draw would be more than the current capacity of the Hokitika water supply plant.
Quin says the proposed partnership plan would produce a good outcome for council, ratepayers and Westland Milk products. "The upgrade plan as outlined for Blue Spur would improve the council's contingency plans for water supply to Hokitika, should the Lake Kaniere line fail. So it is an investment in the town's water supply security.
Westland Milk Products gains the advantage of being able to utilise the council's proven expertise at building and maintaining a quality potable water supply, and ratepayers benefit by having this improvement to their water supply funded through a special rate against our company."
