Construction of the Mataura Valley Milk plant near Gore has been postponed for 12 months because of funding difficulties.
The $90 million plant was due to open next August:
However, chief executive Chris Shelley said last night company directors thought it prudent to postpone construction by 12 months because delays in closing funding meant a risk of missing the start of the 2009 milking season.
Mr Shelley said commercial production would now begin in August 2010.
The global financial crisis was also a factor in the postponement, he said.
This is only a posptonment but there are pretty strong indications the dairy boom has peaked.
Milk companies forecasts for this season’s payout are good by historical standards, but down on last season’s.
Dairy returns are still better than those for beef and lamb, but rising prices for meat are closing the gap which make conversion to dairying less attractive than it was.