A new pet food canning factory in Hornby promises better overall returns for farmers as it taps into lucrative export markets.
Riverland Foods Limited said the plant, which is set to start production at the end of February, will produce 30 million cans of high-value cat and dog food annually, adding significantly to an industry that generates more than $NZ300 million in annual exports.
Riverland describes it as a first for New Zealand, producing exclusively for client brands.
General manager Michael Dance said it would remove a logjam limiting New Zealand as a go-to destination for third-party manufacturing.
He said other plants are either very small and running at full capacity producing their own brands, or on long-term contracts for a small number of large clients.
The Riverland plant is a high speed, high volume line that is attractive to established players around the world.
“Previously these types of companies wouldn’t consider sourcing from New Zealand. The impact for farmers in terms of upstream impact is an increase in demand for what would traditionally be viewed as low value or potentially waste stream products.
“So that’s good news in terms of lifting the overall yield per kg from an animal.”
Dance said not creating their own brand gave Riverland a real point of difference.
“All customers are treated equally. It also gives us the flexibility to meet changing market needs such as different product textures and formulations.”
Dance said they deal with major meat processors for their supply but being based in the South Island has given them more flexibility with raw materials.
“The most obvious example of this is our ability to handle fresh meats versus frozen.
This eliminates a costly step for meat processors and also gives us a better quality ingredient that has not suffered a drastic drop in temperature,” said Dance.
“By working with industry we also believe we can add value to waste streams on the farm and the wider environment.”
The plant was established by a team with extensive experience in meat processing and pet food production including head of operations Tom Coughlan, who says he hopes to provide high-quality cat and dog food that made from the finest South Island ingredients, adding that Canterbury is a strategic location for New Zealand’s leading meat processors.
“We chose Christchurch because it’s close to processing plants and quality raw materials.”
Dance also sees great potential in using pest animals as a source of meat.
“Pest extermination is an area I am personally interested in.
“I want to work with both government and industry to create a financial incentive for the supply of possums, wallabies, rabbits, all of which are very useful and desirable in foreign markets.”
The company is keen to collaborate with local research institutions such as Lincoln and Massey to develop new products and production processes.
“It’s something we’re well placed to do because we have our own R&D facilities and pilot plant,” Dance said.
“Riverland’s ability to create many different textures gives brand owners the opportunity to touch their customers within their brand.”
Dance said the initial investment in the project exceeded $NZ30 million but additional funding had been committed for a future phase of development.
More than 95% of the plant’s output is expected to go to export.
Pet Food Association executive director Richard Brake said the addition of world-class production capacity was welcome.
Pet food exports have quadrupled in less than a decade, rising from $75 million a year in 2014 to $320 million in 2023.
“Retail-ready petfood exports have been growing very strongly for some time. Growth was at 17.4% in North America and 25.3% in Asia,” Brake said.
“A recent plateau in exports was caused by production capacity constraints and most recently the effects of Cyclone Gabrielle on East Coast manufacturers, but the addition of the Riverland factory will further strengthen the export of pet food to New Zealand.”
