Southland-based oat milk producer, New Zealand Functional Foods, has just scored $6 million from the government to develop a plant-based beverage manufacturing facility.

The government investment announced today (11 July) by Economic and Regional Development minister Stuart Nash, will see capital provided from the Regional Strategic Partnership Fund to build a specialised, large-scale processing plant at Makarewa.

Nash said the plant would have the capacity to produce up to 80 million litres of plant-based milk a year.

"Plant-based milk alternatives are a fast growing segment of domestic and international consumer markets, with the amount spent by kiwis on plant-based milks almost tripling from $52 million in 2017 to $144 million in 2019, so the demand is definitely there," he said.

"We know that oats grow well in Southland, and being low in water use, land use and emissions, they are an excellent raw ingredient for an environmentally sustainable alternative-milk option. Producing oat milk locally is a lucrative way to diversify our strength as a quality food producer."