Happy Valley Nutrition has announced a deal to sell up to 50% of the output of its yet to be completed Ōtorohanga milk powder plant to giant Danish co-operative Arla Foods.
The announcement was via the Australian Stock exchange (ASX) in December. “Securing this offtake term sheet validates our protein strategy and the quality of MPC85 that our plant will offer customers,” Happy valley chair Kevin Bush said. “We are continuing negotiations with other leading dairy parties to secure 100% of our production volumes.”
The contract is for the supply of MPC85 milk protein concentrate which is processed by ultrafiltration and spray drying.
The conditional contract was a significant step in validating Happy Valley’s protein strategy and an important vote of confidence from a globally recognised dairy leader, Kevin said. The four-year contract was conditional upon HVN completing the factory and satisfying quality assurance requirements.
Happy Valley Nutrition was continuing negotiations with other potential customers for 100% of the factory output.
The factory site in Otorohanga is barren, fenced off, locked up, and guarded by solar powered security cameras.
Happy Valley Nutrition announced in December its secured debt with Merricks Capital Pty Ltd had been amended and restated until March 15, 2023.
The extension gave Happy Valley flexiblity over the holiday period to progress discussions to finalise its funding strategy and commence the construction phase, Kevin said.
There was continued interest from both debt and equity providers in Happy Valley’s fully consented construction-ready facility, he said.
