THE owners of the new $80m milk powder processing plant hold little concern over the looming multi-million-dollar conventional gas drilling venture adjacent the site south of Penola.
But the Union Dairy Company has flagged its views would shift if the site was converted to hydraulic fracturing, which is commonly known as fracking.
These comments come ahead of production starting at the state-of-the-art facility next week with construction works already under way at Beach Energy’s $12m Haselgrove 3 well site.
“We have met with Beach Energy on numerous occasions to discuss their process and our understanding is they have been conducting conventional drilling in the area for some time before this new well,” Union Dairy Company managing director Daniel Aarons said.
“It is not something new to the area, however if it was to fall into the field of fracking our views would be different.”
He said the area needed gas competition to address South Australia’s high power prices.
Regarding rising energy costs, Mr Aarons said he was concerned due to the size of the plant, however the company was dedicated to working with various organisations to reduce expenses.
“Our plant has been designed to be as efficient as any other plant in the world,” Mr Aarons told The Border Watch.
“We are working over the next 12 months to address issues as best we can and have been cautious not to spend excessive time on things that are beyond our control.”
The company flagged it may look into solar energy in future and has already identified cheaper forms of power such as co-generation on the site.
With production starting next week, the company says it has now completed its workforce recruitment after employing 40 regional workers.
In terms of milk supply, Mr Aarons said the plant had met its minimum requirement, but was still actively seeking to recruit more suppliers.
“We have now increased our desired yearly throughput and will continue recruiting milk for the next few months,” Mr Aarons said.
The plant will also produce bulk fresh milk incorporating 40pc cream, which will be utilised in the domestic market.
“In addition we will be producing anhydrous milk fat, skim milk powder and whole milk powder which will be exported,” Mr Aarons said.
Withe planning for the second stage of the project under way, Mr Aarons said the current stage needed to proceed consistently and efficiently.
“Our main focus will be on running the factory smoothly over the next six months,” Mr Aarons said.
He mooted future planning may consist of creating butter, adding another dryer along with varied and different packing lines to potentiality value-add.
Wattle Range Mayor Peter Gandolfi applauded the new site saying it provided new jobs for locals along with competition and increased demand for milk.
“It is a wonderful rebirth of the previous site, benefiting locals as they are able to gain meaningful and long-term employment,” Mr Gandolfi said.
“Wattle Range has a great reputation when it comes to producing premium products including food and wine and this plant gels together with the entire community.”
He said he was delighted The Midfield Group had chosen to invest at the site.
