Acquisition of Treated Wastewater Irrigation Rights for Milk Processing Plant

Challenge

Danone is a multinational company with global headquarters based in Paris. It was the global leader in dairy and plant-based products in 2024, and second in packaged waters and infant nutrition. In New Zealand Danone operates a milk processing plant near Balclutha, South Otago that produces dry milk powder. This milk powder is a core ingredient in products for both domestic and international customers.

Danone is committed to sustainability, and in 2022 switched to powering its spray-drying plant with renewable energy. It funded and implemented a biomass boiler and water treatment plant at its Balclutha site, using locally-sourced sustainable forestry waste to power the plant. The treated wastewater is used as irrigation to assist with grass growth on neighbouring farmlands.

The plant required an extension to Danone’s existing irrigation scheme. To achieve this, the company needed to acquire the right to irrigate over another neighbouring farm and gain the necessary consents and approvals from local authorities and Iwi.

Solution

SLR’s solution involved a multi-disciplinary project team based in New Zealand, comprising Property Services, Planning, Hydrology and Ecology.

SLR’s Property Services team assisted Danone with obtaining the necessary land rights to install and irrigate on the neighbouring property. This included:

• Working with Danone on the engagement and documentation strategy;
• Assisting with review of the Landowner easement and resource consents;
• Engagement with the Landowner representatives to introduce the concepts and commercials;
• On-site visits with Danone and the Landowner representatives to agree an irrigation plan that worked to achieve the goals of both parties;
• Commercial negotiation with the Landowner on behalf of, and with, Danone;
• Using local knowledge to help appoint a trusted valuer.

Our Property Services team acted as trusted advisors and secured an outcome that worked for both Danone and the Landowner, enabling them to form a long-term, mutually beneficial relationship.

Additionally, SLR’s Planning team assisted Danone with obtaining resource consent and Iwi approval for stage 1 of the irrigation plan. SLR’s Hydrology and Ecology teams provided support to the Planning team to undertake the required assessments to obtain the resource consents. We continue to work with Danone to fully realise its sustainability goals.

Impact

In New Zealand, grazing land requires regular irrigation and fertilisation to retain its nutrient content. Our work with Danone enabled the company to progress its sustainability goals: return treated industrial water back to the land as a useful byproduct, and providing key nutrients to the soil thereby reducing the amount of fertiliser required.

Securing the ability to irrigate the treated wastewater is crucial to the success of the plant, and allows Danone to continue its contributions to New Zealand’s economy.

“It was a pleasure to deal with Michael Seymour and Brad Clarke. They understood the needs of the assignment and the sensitivities that applied. They were a very important part of our virtual cross-functional team.”

Tara Fontanilla, Senior Legal Counsel, Danone