Tim Ryan says oat milk sold at a premium and was the fastest growing plant-based milk category in a global market.

Nine months after Otis Oat Milk launched, the company has announced plans for a purpose-built factory capable of producing 25 million litres a year.

New Zealand’s first locally-produced oat milk, Otis is made with Southland and Otago oats, processed at FoodSouth’s Canterbury factory.

Managing director Tim Ryan said about 5000 litres were made each month but the company could sell much more, “Demand has exceeded our expectations so we’re going to expand our productive capacity and distribution to make oat milk more accessible to Kiwis and then take it to the world.”

Expansion plans included building the country’s first processing facility for plant-based dairy alternatives in Dunedin.

Otis Oat Milk managing director Tim Ryan says the company could sell significantly more than the 5000 litres a month currently produced.

“That’ll grow our productive capacity to 25 million litres per year, allowing us to expand to overseas markets,” Ryan said.

There was no in-between with the infrastructure needed to produce plant milks and the company would have to “jump in and buy the big gear”, he said.

By also making plant-based products for other companies, Ryan was confident production would hit 25 million litres fairly quickly and space would be available to install a second line, potentially doubling capacity.

“We see significant growth potential in the Asian markets, especially given the prevalence of lactose intolerance in those regions,” Ryan said.

Oat milk sold at a premium and was the fastest growing plant-based milk category in a global market expected to be worth more than US$38 billion (NZ$56b) by 2024.

New Zealand-grown oats were especially high in beta glucan, a natural fibre, that helped lower cholesterol, improve blood sugar control, and boost the immune system, Ryan said.

The category holds enormous potential for New Zealand farmers who’d like to shift towards producing higher-value and more environmentally sustainable products.”

Otis was already sold in 150 cafes around the country but the plan was to triple that this year, as well as start sellingthe milk in supermarkets and in Australia, he said.

The company was also looking into the possibility of making other oat milk products, including ice cream and flavoured milks.