The plant, at Studholme, near Waimate in South Canterbury, would need milk from between 550,000 and one million extra cows to derive the economic benefits Fonterra expects, a panel of resource consent commissioners heard.
Former Green Party co-leader Jeanette Fitzsimons, on behalf of the Coal Action Network, said such a significant upscaling would have a huge and enduring impact on the South Canterbury environment.
«The cows would be the equivalent of putting a city the size of Jakarta in South Canterbury with no sewerage plan,» she told Fairfax during the hearing at the Waimate Community Centre on Wednesday.
«Fonterra plans to dry nine million litres per day of milk in this new plant, that milk is not there now and Fonterra has offered no evidence that it ever will be.»
Coal Action Network opposed Fonterra’s applications to expand the Studholme milk processing plant, which has been operating since the mid-2000s, as being too environmentally damaging and unsustainable.
The plans include building two 30-tonne-an-hour milk dryers, two coal-fired boilers, a 66,750 square metre dry powder store and a biological waste water treatment plant.
They also include expanding the site’s storm water storage pond system and constructing an ocean outfall.
Rōpere Consulting Limited director Peter Fraser, an economist, provided expert evidence for the network that between 550,000 and one million more cows would be required by the plant.
«For Fonterra to achieve the economic benefits claimed, it implies living with the effects of building a city the size of Jakarta in South Canterbury,» he said.
Commissioner John Iseli asked how Fraser determined this would be the same as dropping a city in the region.
Fraser said it was determined by the impact of dairy on the environment: «For every one litre of milk, 1000 litres of water was needed.»
«The figures were based on determining the increase in cows required if Fonterra operates the two proposed driers at just under 400 tonnes of powder per drier per day.»
They were also linked to what would be needed to operate the Studholme driers at the same level as its Darfield plant, a 30 metric tonne per hour plant producing 700 tonnes of powder per day.
«It has an equivalent environmental impact, in terms of water use, of between eight and 15 million people,» he said.
«Given the structural changes in the international dairy market, I do not think the Jakarta-sized city will get built, which means the economic benefit of the expansion are illusionary as they will never eventuate.»
Retired social scientist Bob Calkin agreed with Fraser and said the plight of the dairy industry made the expansion application hard to understand.
«Fonterra is pushing the boundaries of prudence to extremes in wanting to proceed with this project, given the weakness of its balance sheet in terms of the scale of its activities,» Calkin said.
«Fonterra risks over extending itself and if it does this, it would create a great deal more pain for many people.»
Commissioner Paul Rogers asked whether the dairy industry was a riskier option in comparison to other industries.
Presenter Tim Jones said: «Relying on one industry presents a greater risk than relying on a range of industries.»
«I would not think it prudent to have the income dependence of a region’s economy on one industry.»
The two week hearing is set to conclude on Friday.
Source: Stuff