FONTERRA DARFIELD MILK POWDER PLANT PROPOSED STAGE 2

ASSESSMENT OF ECONOMIC IMPACTS

Mike Copeland
Brown, Copeland & Co Ltd
13 July 2011


1. INTRODUCTION

Report Objective and Format

1.1 In 2010, Fonterra received consents allowing it to develop a new milk powder
plant at Darfield. Construction of the proposed plant has commenced and is
expected to be completed and the plant operational by August 2012. This (Stage
1) development will have the capacity to process up to 2.2 million litres of milk per
day but there is capacity to accommodate future plant expansions on the 680
hectare site. Fonterra considered the plant necessary to allow for the current and
future expansion of milk processing in the Canterbury Region.

1.2 Fonterra now wishes to proceed with obtaining consents to enable the
construction of a second plant on the site with an additional capacity of 5 million
litres of milk per day (the Stage 2 Project), giving a total processing capacity on
the site of 7.2 million litres of milk per day. To expand the processing capacity as
proposed, Fonterra requires land use consent for construction and resource
consents for land use, stormwater, discharge to air and land and disposal of
wastewater. This report accordingly undertakes an assessment of the economic
impacts of the Stage 2 Project and forms part of Fonterras assessment of
environmental effects (AEE) of the Stage 2 Project.

1.3 This report is divided into 6 parts (in addition to this introductory section). These
are:
(a) the background to Fonterras development at Darfield;
(b) a consideration of the relevance of economic effects under the Resource
Management Act (RMA);
(c) a description of the key economic drivers of the Selwyn District economy;
(d) the local district economic impacts during the Stage 2 Projects
construction and operational phases;
(e) a discussion of the potential economic costs; and
(f) some overall conclusions.

2. BACKGROUND TO PROPOSED DEVELOPMENT
1


2.1 New Zealand is the worlds largest exporter of milk products and Fonterra, which
processes 92% of New Zealands total milk production, is the largest dairy
exporter to the global open market. Fonterra is New Zealands biggest company
and is responsible for 25% of New Zealands total exports by value. Each year
Fonterra processes around 14 billion litres of milk at 24 processing sites in New
Zealand, employing 9,500 people and earning $16 billion in annual revenues. The
company is co-operatively owned by 10,500 shareholders, who are a mix of family
owned farms and corporate entities.

2.2 Whereas milk production in the North Island has ceased growing, milk production
in the South Island continues to grow, especially in the Canterbury region, which
now produces 10% of New Zealands milk. Canterbury is the fastest growing
dairying region in New Zealand with milk production in Canterbury growing at 5%
per annum.

2.3 To cope with the growth in milk production in Canterbury (and the South Island),
Fonterra over the last 10 years has expanded its plant(s) at Clandeboye
2
near
Timaru (and Edendale
3
near Invercargill). However, to meet anticipated future

1
Material in this section provided by Fonterra.
2
Clandeboye is now Fonterras third largest milk processing site.
3
Edendale is now the worlds largest milk processing site by milk volume.
growth in Canterburys milk supply, Fonterra proposed the new plant situated near
Darfield in the Selwyn District.

2.4 Fonterra has analysed the location of existing and projected future milk production
from farms in the Canterbury region and has assessed the advantages of the
proposed site near Darfield relative to other potential new sites and the expansion
of the existing plant at Clandeboye. Fonterra has concluded that the key
advantages of the proposed Darfield site are:
The surrounding area has dairy growth potential;
The site is large enough to allow for future expansions such as the
proposed Stage 2 Project to cope with predicted future increases in North
and Mid Canterbury milk supply;
The site is on a main road with good road network links;
The site is adjacent to the rail network for delivery of inputs and export of
milk products;
The site is close to Lyttelton Port;
The site is close to Darfield and Christchurch City for skilled staff and
support industries;
The site has a sufficient supply of good quality water, a reliable electricity
supply and is of sufficient size to enable on-site wastewater disposal; and
The site is some distance from neighbours and effects on them can be
mitigated.

3. ECONOMICS AND THE RMA

Community Economic Wellbeing

3.1 Economic considerations are intertwined with the concept of the sustainable
management of natural and physical resources, which is embodied in the RMA. In
particular, Part II section 5(2) refers to enabling people and communities to
provide for their economic ... well being as a part of the meaning of
sustainable management, the promotion of which is the purpose of the RMA.

3.2 As well as indicating the relevance of economic effects in considerations under the
RMA, this section also refers to people and communities (emphasis added),
which highlights that in assessing the impacts of a proposal it is the impacts on the
community and not just the applicant or particular individuals or organisations, that
must be taken into account. This is underpinned by the definition of environment
which also extends to include people and communities.

Economic Efficiency

3.3 Part II section 7(b) of the RMA notes that in achieving the purpose of the Act, all
persons shall have particular regard to ... the efficient use and development of
natural and physical resources which include the economic concept of efficiency
4
.
Economic efficiency can be defined as:

the effectiveness of resource allocation in the economy as a whole such that outputs of
goods and services fully reflect consumer preferences for these goods and services as
well as individual goods and services being produced at minimum cost through
appropriate mixes of factor inputs
5
.

3.4 More generally economic efficiency can be considered in terms of:
Maximising the value of outputs divided by the cost of inputs;
Maximising the value of outputs for a given cost of inputs;
Minimising the cost of inputs for a given value of outputs;
Improving the utilisation of existing assets; and
Minimising waste.

Viewpoint

3.5 An essential first step in carrying out an evaluation of the positive and negative
economic effects of a development project is to define the appropriate viewpoint
that is to be adopted. This helps to define which economic effects are relevant to

4
See, for example, in Marlborough Ridge Ltd v Marlborough District Council [1998] NZRMA 73, the
Court noted that all aspects of efficiency are economic by definition because economics is about
the use of resources generally.
5
Pass, Christopher and Lowes, Bryan, 1993, Collins Dictionary of Economics (2
nd
edition), Harper
Collins, page 148.
the analysis. Typically a district or wider regional viewpoint is adopted and
sometimes even a nationwide viewpoint might be considered appropriate
6
.

3.6 For Fonterras proposed expansion of the its new milk powder plant at Darfield it is
appropriate to consider Selwyn District economic impacts given the Stage 2
Projects likely impacts on local residents and businesses. At the Canterbury
regional level many of the projects economic impacts net out in that without the
new plant expansion, Canterburys expanding milk production will need to be
processed somewhere in the region either at an expanded Clandeboye or at an
alternative site for a new plant. However in terms of economic efficiency effects
the project generates district, regional and national level economic benefits.

3.7 There are also private or financial costs and benefits associated with this
proposal. If consents are granted for the Stage 2 Project, and Fonterra gives
effect to those consents then it can be assumed that these private or financial
costs and benefits have been responsibly and properly analysed and that from the
viewpoint of those with money at risk, the expected financial benefits exceed the
expected costs. Accountability for accuracy of the financial analysis clearly rests
with Fonterra and ultimately the net financial benefits Fonterra might receive from
the proposal are not directly relevant to the assessment of effects under the RMA.
The focus of this report is therefore on the wider economic effects on parties other
than Fonterra and its customers. Economists refer to such effects as
externalities
7
.

Economic Rationale for Land Use Controls

3.8 Over the past thirty years or so there has been a growing acceptance in New
Zealand and other countries that economic efficiency is maximised when
investment decisions are left to individual entrepreneurs or firms, without
intervention from Government. The reason for this is that a perfectly competitive
market achieves an efficient allocation of resources. Accordingly, the efficient use
of resources (and therefore sustainable management) occurs through the

6
For example, there was an inference that the consideration of Project Aqua and other Waitaki
River water allocation cases by a central government appointed body was to broaden the viewpoint
from a local district or regional level to a wider national level.
7
Defined as the side effects of the production or use of a good or service, which affects third parties,
other than just the buyer and seller.
creation of a climate where the market enables people to make investment
decisions to provide for their economic well-being.

3.9 Despite this, markets are not perfect, and the presence of externalities affects
the working of the market and the results that could be expected from a totally
unregulated system of resource allocation. Externalities arise because the actions
of individuals or firms sometimes create positive or negative impacts on others.

3.10 It is also unrealistic to assume that development of particular forms of economic
activity and/or the location of that economic activity will avoid the imposition of
costs on the community in general. Where the developer, and/or those engaged in
the various forms of economic activity at the site do not face the incidence of
these costs, externalities arise and intervention of some form may be justified. In
other words the development may create costs or benefits for parties other than
those commercially involved in the development.

3.11 Externalities may be in the form of environmental effects such as visual, noise,
water or air pollution effects. Externalities in an economic context may relate to the
provision of infrastructure where a strict user pays system is not in place; to traffic
congestion and road accident effects; and to the so called agglomeration
economies and public amenity benefits, which relate to the beneficial effects for
businesses, customers and residents in concentrating particular forms of
economic activity within confined areas.

3.12 It is the presence of externalities (economic and non economic), which justify land
use constraints since if externalities are not present the market can be left to itself
to optimise resource use efficiency. However the existence of externality costs per
se does not justify intervention for example by not granting resource consent for
the expansion of Fonterras new milk powder plant at Darfield and preventing a
more
8
market determined outcome with respect to the use of the land.


8
Granting resource consent for the proposed expansion of the milk powder plant at darfield would
not constitute a completely free market outcome. Expansion of the plant will still be subject to the
constraints which already exist in the District Plan and any additional constraints imposed when
consents are granted. These consenting constraints may have the effect of addressing externalities
which would otherwise arise. Also Fonterra in developing and operating its expanded plant will be
subject to various regulatory constraints other than those imposed under the RMA for example,
occupational safety and health regulations.
3.13 Firstly intervention is not costless in that it prevents a market determined outcome,
maximising producer and consumer choice. Preventing Fonterra from best
meeting the needs of its customers and suppliers will have economic efficiency
costs for Fonterra, its customers, farmer suppliers and shareholders. Incurring
these costs is only justified if significant economic (or non-economic) externality
costs are associated with the proposed development.

3.14 Secondly there may be externality benefits from the proposed Fonterra plant
expansion that outweigh any externality costs which may result from it. Therefore
a range of economic externalities (both positive and negative) arising from the
proposed Stage 2 Project expanding the new milk powder plant are discussed
later in this report.

4. THE SELWYN DISTRICT ECONOMY

Population
9


4.1 The 2006 census recorded a population in the Selwyn District of 33,669 persons,
which represented 6.5% of Canterburys population. In 2001, Selwyn Districts
population was 27,312 and the growth of 18.8% over the period 2001 to 2006 was
considerably higher than that for Canterbury (8.0%) and New Zealand (7.8%) over
the same period. Between 2006 and 2010, Selwyns population is estimated by
Statistics New Zealand to have grown by a further 11.3%, as compared to growth
of 4.8% for the Canterbury region and 4.4% for New Zealand as whole.

4.2 Statistics New Zealands medium population projections
10
have Selwyns
population growing at an average rate of 2% per annum over the period 2006-31,
compared to an average rate of growth for the Canterbury region and New
Zealand of only 0.8% per annum.

Gross Domestic Product
11


9
Data in this section from Statistics New Zealand.
10
Statistics New Zealand prepare three sets of projections high, medium and low according to
natural population change (i.e. the net effect of birth and death rate assumptions) and net migration
assumptions. These projections do not explicitly incorporate assumptions about different rates of
economic development.
11
Data in this section taken from work undertaken for the Selwyn District Council see Selwyn
Economic Base for the District; Caroline Saunders, Meike Guenther and Paul Dalziel, AERU,

4.3 An analysis of contributions to Gross Domestic Product (GDP) for the Selwyn
District highlights its reliance on the agricultural sector insofar as economic activity
within the District is concerned.
12
For 2007, the agriculture, forestry and fishing
industry group
13
accounted for 29.0% of GDP for the Selwyn District, as compared
to only 6.1% for the whole of New Zealand.
14
The second most important industry
group is the government administration and defence group which accounted for
18.4% of Selwyns GDP, as compared to only 4.4% for all of New Zealand.
15
This
reflects the presence of the Burnham military camp within the Selwyn District.
Manufacturing accounted for 8.5% of Selwyns GDP but this is much lower than
the 14.0% for all of New Zealand.

4.4 The Selwyn District, given that it is not a metropolitan centre, is also
underrepresented in electricity, gas and water supply, wholesale trade, retail
trade, communication services, finance and insurance, property and business
services, health and community services and cultural and recreational services. It
is overrepresented in education reflecting the presence of Lincoln University
within the District. In other industry groups including accommodation, cafes and
restaurants, the GDP contribution percentages are similar to those for the national
economy.

Employment
16


4.5 Like the GDP data, employment data also highlight the dependence of the Selwyn
District economy on the agriculture, forestry and fishing industry group. In the
November 2010, 2,269 jobs (21.3%) of Selwyn Districts 12,540 jobs were in this

Lincoln University, 20 September, 2009 and Quarterly Economic Monitor Selwyn District;
Infometrics; December 2009.
12
Some persons residing in the Selwyn District commute into Christchurch City for employment. To
this extent the reliance of the District on the agricultural sector, measured only in terms of economic
activity generated within the District, is overstated.
13
Statistics New Zealand data on the number of firms shows that agriculture predominates over the
other industries within this group. Agriculture accounts for 89.2% of all firms in this industry group.
Of the remaining 10.8% of firms in this industry group 6.4% are agriculture, forestry and fishing
support services firms and many of these will also be orientated towards the agriculture sector.
14
For 2009, Infometrics estimate this industry groups contribution to Selwyn Districts GDP was
27.8%. No 2009 comparative estimate is available for New Zealand.
15
For 2009, Infometrics estimate this industry groups contribution to Selwyn Districts GDP was
19.1%.
16
Data in this section from Statistics New Zealand.
industry group. The next most important sectors by employment were public
administration and safety (19.1%), education (13.5%), and manufacturing (10.1%).

5. ECONOMIC BENEFITS OF THE PROPOSED DARFIELD MILK POWDER PLANT

Increased Economic Activity during Plant Construction
17


5.1 The Stage 2 Projects construction is likely to commence sometime in the five
years after the Stage 1 plant is constructed and operational (i.e. sometime in the
five years after August 2012) and last for eighteen months. The project has an
estimated construction cost of $240 million (excluding land costs). The majority of
the equipment, materials and services required for the plants expansion will be
sourced from within New Zealand, with the remainder imported from overseas.
Local Selwyn District suppliers will be used wherever possible, but realistically
most suppliers from the Canterbury region will be predominantly located in
Christchurch City rather than the Selwyn District. Goods and services, which may
be supplied from the Selwyn District during the Stage 2 Project, include
excavation services, concrete, road construction materials, fencing, shelter belt
planting, re-grassing, catering services, construction labour, laundry services,
accommodation and security services.

5.2 During the Stage 2 Project construction an on-site workforce starting at 50
employees and peaking at 700 employees will be required with an estimated
monthly average of around 300 employees. Wage and salary payments for these
employees are estimated to average $17 million per annum.
18
How much of these
wage and salary payments will be injected into the Selwyn District economy is
difficult to estimate. This depends on how many construction workers will reside
permanently in the District over the construction period, how many construction
workers will reside temporarily in the District over the construction period and how
much of non-resident construction workers incomes will be spent in the District.


17
Unless stated otherwise data in this section provided by Fonterra.
18
Based on an average salary per employee of $55,000 per annum. This is the same as the average
salary assumed in 2010 for the Stage 1 development assessment of economic effects report. Wage
and salary inflation is likely to have lifted this figure slightly but within the margins of error of
estimates in this report, which expresses all costs in 2011 price terms.
5.3 Statistics New Zealand forecasts indicate that in 2011, Selwyns population will be
8.7% of the combined populations of Christchurch City (378,900), Waimakariri
District (49,100) and Selwyn District (40,900). On the basis of this a very
conservative estimate is that something in the vicinity of 10% of the workforces
income will find its way into the Selwyn District economy i.e. there will be an
equivalent of 30 extra fulltime on-site construction jobs created for Selwyn District
residents and an additional $1.7 million per annum in additional income for Selwyn
resident households. These are the direct economic impacts for the Selwyn
District economy during the Stage 2 Projects construction.

5.4 However in addition to these direct economic impacts there are indirect impacts
arising from:
The effects on suppliers of goods and services provided to the site
from within the District (i.e. the forward and backward linkage
effects). As noted above these will be limited by the equipment,
materials and services required for Stage 2 of the milk powder
plants construction being sourced mostly from outside the Selwyn
District; and
The supply of goods and services to employees at the site and to
those engaged in supplying goods and services to the site (i.e. the
induced effects). For example, there will be additional jobs and
incomes for employees of supermarkets, restaurants and bars as
a consequence of the additional expenditure by employees
directly involved in the plants construction at the site and living
within the Selwyn District.

5.5 District multipliers can be estimated to gauge the size of these indirect effects.
The size of the multipliers is a function of the extent to which a district economy is
self-sufficient in the provision of a full range of goods and services and the
districts proximity to alternative sources of supply. District multipliers typically fall
in the range of 1.5 to 2.0 and taking the low point of 1.5, given the Selwyn
Districts close proximity to Christchurch, implies total impacts (i.e. direct plus
indirect impacts) during the Stage 2 construction period of:
45 additional jobs for local Selwyn District residents; and
$2.6 million per annum in additional wages and salaries for local
Selwyn District residents.

Increased Economic Activity during Expanded Plants Operation
19


5.6 After the Stage 2 Project expansion is completed, the plant will require additional
inputs of materials and services other than milk and employee labour. Again these
are likely to be largely drawn from Christchurch City. Fonterra estimates about
80% of operational input supplies other than milk and employee labour will come
from Christchurch City. However some local Selwyn District firms may provide
goods and services to the plant including, for example security services, laundry
services, gardening services, canteen outsourcing, electrical maintenance
services and mechanical maintenance services. Fonterra estimate a maximum of
10% of the value of operational input supplies (other than milk and employee
labour) might be supplied from within the Selwyn District.

5.7 Of the expected additional Stage 2 operational on-site workforce of 23 fulltime
equivalent (FTE) employees and up to an additional 39 milk tanker drivers, it is
estimated that at least 50% or 31 additional FTEs are likely to reside permanently
within the Selwyn District.
20
This estimate is based on travel times from Darfield of
around 5 minutes, from Sheffield of around 10 minutes, from Springfield of around
15 minutes, from Rolleston and West Melton of 20 to 25 minutes and from
Christchurch of up to 1 hour depending where in the City an employee resides and
peak versus off-peak travel times. This implies an ongoing increase in direct
employment within Selwyn District of 31 jobs and an increase in direct household
income of $2.3 million per annum (on the basis of an average salary for plant
employees and drivers of $75,000 per annum).

5.8 Again using a district multiplier of 1.5 implies an increase in direct plus indirect
employment of 46.5 FTE jobs for local Selwyn District residents and an increase in
direct plus indirect household income of $3.5 million per annum within the Selwyn
District economy.

19
Unless stated otherwise data in this section provided by Fonterra.
20
This may be conservative in that the additional drivers required as a result of the Stage 2 Project
are more likely to be within a 30 minute drive time to the plant where the tankers will be based,
given the shift work involved. In the case of Stage 1, no new tanker driver positions were assumed.

Economic Benefits from Increased Economic Activity

5.9 As indicators of levels of economic activity, economic impacts in terms of
increased expenditure, incomes and employment within the Selwyn District
economy are not in themselves measures of improvements in economic welfare or
economic wellbeing. However, there are economic welfare enhancing benefits
associated with increased levels of economic activity. These relate to one or more
of:
Increased economies of scale: Businesses and public sector
agencies are able to provide increased amounts of outputs with
lower unit costs, hence increasing profitability or lowering prices;
Increased competition: Increases in the demand for goods and
services allow a greater number of providers of goods and
services to enter markets and there are efficiency benefits from
increased levels of competition;
Reduced unemployment and underemployment
21
of resources: To
the extent resources (including labour) would be otherwise
unemployed or underemployed, increases in economic activity
can bring efficiency benefits when there is a reduction in
unemployment and underemployment. The extent of such gains
is of course a function of the extent of underutilized resources
within the local economy at the time and the match of resource
requirements of a project and those resources unemployed or
underemployed within the local economy; and
Increased quality of central government provided services:
Sometimes the quality of services provided by central government
such as education and health care are a function of population
levels and the quality of such services in a community can be
increased if increased economic activity maintains or enhances
population levels.


21
Underemployment differs from unemployment in that resources are employed but not at their
maximum worth; e.g. in the case of labour, it can be employed at a higher skill and/or productivity
level, reflected in higher wage rates.
5.10 It is reasonable to presume that increases in economic activity (i.e. expenditures,
incomes and employment) within the Selwyn District economy as a consequence
of the Stage 2 expansion of Fonterras new milk powder plant will give rise to one
or more of these four welfare enhancing economic benefits for the local
community. For example, increases in population in the District will help underpin
existing school rolls.

Economic Efficiency Benefits from Optimising Plant Location

5.11 Fonterra, in choosing the proposed site for its new milk powder plant has sought
to minimise milk collection costs having regard to the existing and likely future
pattern of milk production throughout the Canterbury region. A reduction of some
20,000 vehicle kilometres per day travelled by milk tankers has been estimated for
the Stage 1 development.
22
Other factors influencing the choice of the Darfield site
are its proximity to Port Lyttelton and its access to the rail network for receiving
inputs into the site and the export of finished products.

5.12 Fonterra has estimated that, from a milk collection point of view, there is an
additional saving of 10,000 vehicle kilometres per day travelled by milk tankers if
the plant at Darfield is expanded compared to a similar expansion of its
Clandeboye plant. In addition because the finished product will travel by rail from
Darfield to Port Lyttleton instead of by road from Clandeboye to Port Lyttelton
there will be a reduction of 52 truck movements per day between Clandeboye and
Lyttelton or 8,100 vehicle-kilometres per day.

5.13 Reducing road transport kilometres associated with the collection of milk and the
export of products from the site will reduce the externality costs associated with
road transport. It is therefore appropriate to expect a reduction in road accident
costs, road transport pollution costs and travel time costs for other road users. For
example Fonterras initial estimates show that the Stage 2 Project expansion at
Darfield will result in a reduction in the carbon footprint of 23 tonnes per day in
CO
2
emissions as a consequence of reduced milk collection distances and rail
transport replacing road transport for the export of products from the site.

22
Assuming the alternative to the new plant is the expansion of the existing Clandeboye plant. See
Section 9.1, Appendix J: Transportation Assessment Report (for the Stage 1 Development); Traffic
Design Group; June 2010.

Increased Diversity for the Selwyn District Economy

5.14 As noted in Section 3 of this report, the Selwyn District economy is primarily driven
by the agricultural, forestry and fishing industry group
23
, which accounted for
29.0% of the Districts GDP in 2007. The comparative New Zealand-wide
percentage is only 6.1%. The next most significant industry group is government
administration and defence, which accounted for 18.4% against a national figure
of 4.4%, reflecting the presence of the Burnham military camp within the Selwyn
District. Manufacturing at 8.5% is the next most significant industry group in the
District but this is much less than the national figure of 14.0%.

5.15 Therefore Fonterras Stage 2 expansion of its proposed new milk powder plant at
Darfield will help provide greater diversity and balance to the Selwyn District
economy. Although it will involve the processing of milk, additional manufacturing
activity in the District will provide employment opportunities and incomes less
dependent upon returns to the agricultural sector. This will make the Selwyn
District economy more resilient to agricultural commodity price cycles.

5.16 Also the proposed expansion of Fonterras milk powder plant at Darfield (and the
ongoing construction of the Stage 1 plant) will provide much needed confidence to
the manufacturing sector of greater Christchurch following the major earthquakes
of September 2010, February 2011 and June 2011 and ongoing aftershocks.

Increased Rates Revenue for Selwyn District Council

5.17 Fonterra will pay increased rates as a consequence of the Stage 2 Project as the
general rate is applied to the capital value of properties. Because of economies of
scale it is likely that the increase in rates paid by Fonterra will be greater than the
increase in Councils costs. From the perspective of the Selwyn District Council
and other ratepayers in the District, this broadening of the rating base provides the
opportunity for a greater range of Council provided services or a reduction in the
rates burden for other ratepayers.


23
Predominantly agriculture.
Community Sponsorship Programme

5.18 In recognition of the important role the community plays in helping Fonterra realise
its potential, the company provides financial support to a number of initiatives at
the community and national level. At the community level 6 regions have been
identified for local community support in the areas of environment, education,
emergency response and nutrition and well being. These regions are at the
various locations where Fonterra has significant milk processing plants. A new
region has been established at the plant at Darfield and a community site relations
champion appointed as a point of contact for the Selwyn District community.
Expanding the plant at Darfield as compared to expansion of one of Fonterras
alternative plants or establishment of a plant at a new site will lead to a greater
contribution by Fonterra to the local Selwyn District community.

6. POTENTIAL ECONOMIC COSTS OF THE PROPOSED DARFIELD MILK POWDER
PLANT

Lost Agricultural Production

6.1 Lost agricultural production is not an external cost of Fonterras proposed new
milk powder plant at Darfield. The productive value of the land in alternative uses
will be internalised into the cost structure of the development in other words
Fonterra in purchasing the land will pay a price reflective of future net returns from
alternative uses for the land. Such costs are not costs to be borne by the wider
community.

6.2 In any case the increase in the lands rateable value if land use consent is granted
will be indicative of the land being used more efficiently than if it continued only in
its current use.

6.3 In terms of reduced economic activity within the District from a reduction in
agricultural use, current employment on the site is estimated at 5 FTEs and
therefore even with District multiplier impacts taken into account the additional
economic activity generated within the Selwyn District by the new milk powder
plant and the subsequent Stage 2 Project expansion of the plant will significantly
outweigh any reductions in economic activity from any displaced farming.
Furthermore the plant and roads on the site after Stage 2 is completed are
estimated to require less than 2% of the site (12.5 hectares
24
out of 680 hectares),
and the remainder of the site will continue to be used for agricultural purposes with
an improved supply of irrigation water from the plants treated wastewater system.
Therefore any reduction in agricultural activity on the site as a consequence of the
Stage 2 Project will be insignificant. Also Fonterra are in the processing of seeking
consent for a further 212 hectares of third party irrigation, increasing production
from these properties which are not currently irrigated.

Reductions in Tourism

6.4 The accommodation, cafes and restaurants industry group accounts for 1.5% of
the Selwyn Districts GDP. This is same percentage as for New Zealand as a
whole. Whilst tourism is not as significant a driver of the District economy as other
industries (e.g. agriculture), the District is the home to several ski-fields (Broken
River, Craigieburn, Mt Olympus, Porter Heights, Mt Cheeseman and Temple
Basin) and the Arthurs Pass National Park and offers a wide range of outdoor
activities for visitors to the District to enjoy.

6.5 The new milk powder plant will be situated outside of any main centre in the
District, will not be adjacent or near to tourist attractions and will be almost
invisible from State Highway 73. The new milk powder plant and its proposed
Stage 2 expansion will not impact on outdoor pursuits in the District such as
skiing, tramping, mountain climbing or fishing. The evidence of Mr Greenaway
concluded in relation to the Stage 1 plant proposal concluded that it would not
cause adverse impacts on regional tourism activity. Therefore I believe that it is
unlikely that the plant or its proposed expansion would have any discernable
negative impact on tourist visitor numbers, their length of stay in the District and
tourist expenditure in the District.

6.6 In fact the expansion of a major manufacturing plant within the District is likely to
lead to some increase in visitor numbers to the District and benefits in terms of
additional visitor spending on locally provided accommodation and hospitality.
During the construction phase of the Stage 2 Project, there will be significant

24
The Stage 2 expansion only involves and additional 0.5 hectares of site coverage.
increases in demand for short-term and long-term accommodation within the
District, especially in and around Darfield. Once the expanded plant is operational
there will be an increased number of visitors to the project site who will require
overnight accommodation within the general vicinity of the plant.

Utilities

6.7 Externality costs can arise when utilities provided by central or local government
(e.g. roads, water supply, storm water and flood control systems and wastewater
disposal) are not appropriately priced. In the case of Fonterras proposed
expansion of its milk powder plant at Darfield no such externality costs will arise.

6.8 Stage 2 will not require any further improvements to the intersection onto State
Highway 73 and the level crossing providing access to the site from the existing
road network. The assessment of traffic effects concludes that the access
arrangements consented for Stage 1 will readily accommodate the volume of
vehicles envisaged during the construction and operation of Stage 2, although it
will be necessary to adopt working practices to ensure that traffic volumes are
spread over a 30 minute period rather than 15 minutes, in order to reduce queue
lengths at the access. However, with this arrangement in place it is considered
that the traffic generated will be safely and efficiently accommodated within the
adjacent road network.
25


6.9 Fonterra and its farmer suppliers will make payments via road user charges and
rates for any additional ongoing maintenance and necessary upgrades to the state
highway and local district council road networks as a consequence of increased
milk tanker movements within the Selwyn District resulting from the Stage 2
expansion.

6.10 With respect to water supply on-site bores will be used for the new plant and its
expansion. For storm water and wastewater disposal the new expanded Fonterra
milk powder plant will be totally self-sufficient. The plant will not use the Selwyn
District Council provided services and there can be no concerns that other

25
See Fonterra Co-operative Group Ltd, Darfield Milk Powder Plant Stage 2 Transportation
Assessment Report; Traffic Design Group, 2011.
ratepayers of the District will be providing subsidised services to the expanded
plant.

Local Road Congestion Costs

6.11 An analysis of the traffic effects of the Stage 2 Project has concluded that the
access arrangements agreed in relation to the Stage 1 development are sufficient
to accommodate the additional volumes of vehicles envisaged and that the traffic
generated during both the construction and operation of the expanded plant will
be safely and efficiently accommodated within the adjacent road network.
26


7. CONCLUSIONS

7.1 The proposed expansion of Fonterras Darfield Milk Powder Plant will enhance the
economic well being of the Selwyn community by:

(i) Creating an additional 45 jobs for Selwyn District residents during the
Stage 2 Projects eighteen month construction period;

(ii) Creating an additional 46.5 jobs for Selwyn District residents once the
plant is operational;

(iii) Increasing total household income in the District by $2.6 million per
annum during the plants eighteen month construction period;

(iv) Increasing total household income in the District by $3.5 million per
annum once the plant is operational;

(v) Increasing population in the District, thereby increasing or maintaining the
quality of some central government provided services;

(vi) Providing the local economy with greater diversity and resilience;


26
See See Fonterra Co-operative Group Ltd, Darfield Milk Powder Plant Stage 2 Transportation
Assessment Report; Traffic Design Group, 2011.
(vii) Increasing confidence in the Greater Christchurch manufacturing sector
following the major earthquakes of September 2010, February 2011 and
June 2011 and ongoing aftershocks;

(viii) Providing greater employment choice for local residents;

(ix) Broadening the rating base of the Selwyn District Council; and

(x) Fonterra making additional contributions to local community activities, in
its role as a responsible employer and good corporate citizen.

7.2 The new plant will improve resource use efficiency by:

(i) Increasing economic activity and population in the Selwyn District,
enabling increased economies of scale in the local provision of goods
and services;

(ii) Reducing transport costs for the collection of milk and the export of
finished products; and

(iii) Reducing externality costs associated with road transport including road
accident costs, road transport pollution costs and travel time costs for
other road users.

7.3 The new plant will not give rise to economic externality costs.

INITIAL DATE
DESIGNED AC 150711
DRAWN EG 150711
APPROVED AC 150711
CLIENT FONTERRA DARFIELD
DRAWING NUMBER: FILENAME: SCALE 1:7500 @ A4
FD2#-A4-P1-XR FD2.indd
ATTACHMENT 1 - FONTERRA DARFIELD STAGE 2
LANDSCAPE PLAN
setback 50m
from
rail
Oak trees (Quercus robur) to be
4.0m high at time of planting
with maximum 6.0mspacing
between trees in each group
INITIAL DATE
DESIGNED AC 150711
DRAWN EG 150711
APPROVED AC 150711
CLIENT FONTERRA DARFIELD
DRAWING NUMBER: FILENAME: SCALE 1:2000 @ A4
FD2#-A4-P2-XR FD2.indd
ATTACHMENT 1 - FONTERRA DARFIELD STAGE 2
LANDSCAPE PLAN OAKS
setback 50m
from
rail
Oak trees (Quercus robur) to be 4.0m
high at time of planting with
maximum 6.0m spacing between
trees in each group
0 50 100 m
INITIAL DATE
DESIGNED AC 150711
DRAWN EG 150711
APPROVED AC 150711
CLIENT FONTERRA DARFIELD
DRAWING NUMBER: FILENAME: NOT TO SCALE
FD2#-A4-P3-XR FD2.indd
FONTERRA DARFIELD STAGE 2
COMPARATIVE ELEVATIONS - EAST AND NORTH
East Elevation
North Elevation
NOTE: Elements shaded blue are identifed as part of stage 2 application. Unshaded areas represent stage 1.
INITIAL DATE
DESIGNED AC 150711
DRAWN EG 150711
APPROVED AC 150711
CLIENT FONTERRA DARFIELD
DRAWING NUMBER: FILENAME: NOT TO SCALE
FD2#-A4-P4-XR FD2.indd
FONTERRA DARFIELD STAGE 2
COMPARATIVE ELEVATIONS - WEST & SOUTH
West Elevation
South Elevation
NOTE: Elements shaded blue are identifed as part of stage 2 application. Unshaded areas represent stage 1.



NOTE: This photograph shows the location of dwellings and degree of visual effects.
The Stage 1 plant is shown only, not the stage 2 extension, which has no effect on the location of vantage points.
The degree of effects relative to Stage 1 and 2 remains the same.


DARFIELD MILK POWDER PLANT Stage 1 VIEW EFFECTS ON DWELLINGS ATTACHMENT 2
July 2011

Proposed Darfield Milk Powder Plant Stage 2








Assessment of Environmental Effects -
Landscape













Prepared by Andrew Craig for Fonterra Co-operative Group Limited (the Applicant)

Andrew Craig Landscape Architect Ltd
Poynton House
68 Oxford Terrace
Christchurch

PO Box 109
Christchurch 8140
Ph. 03 377 0157
Mob. 021 146 1092
andrew@acla.co.nz

July 2011
2
1.0 INTRODUCTION

In this report the effects on the landscape of a proposal to develop Stage 2 of the
milk powder processing plant north of Darfield is assessed. A full description of the
proposal, including architectural drawings, accompanies the application. The extent
and location of the proposal is also shown within that documentation.

Much of the landscape assessment prepared for Stage 1 remains relevant for the
Stage 2 proposal. This will principally concern the description of the application site
and receiving environment and statutory landscape matters arising from the Selwyn
District Plan. Fundamentally the conditions for these remain the same as for Stage 1.
The same applies to the recommended landscape conditions, as it is concluded that
Stage 2 will not necessitate that these need to be altered or expanded. Consequently
the following matters are addressed.

A description of the Stage 2 proposal and its potential effects within its
landscape setting.

Measures taken to avoid and / or mitigate any adverse effects arising.

Conclusions

In preparing this assessment it is understood that the overall activity status for the
proposal is fully discretionary.

This assessment is based on plans prepared by Babbage Consultants Limited and
elevations prepared by DLA Architects Limited attached to the application. From
these photo-simulations have been prepared
1
which give an accurate indication of
what the visual effects are going to be as viewed from key vantage points.


2.0 THE LANDSCAPE EFFECTS OF THE STAGE 2 PROPOSAL

The Stage 2 proposal will fundamentally involve expansion of the Stage 1 plant, and
this will include the following;

An additional 56.2m high drier, plus rooftop discharge stacks
An extended 30,000m
2
drystore and loadout area
A second boiler which does not include a second chimney
Various minor accessory structures

Of these the dryer, drystore and boiler will potentially create the greatest visual
effects. The taller structures, namely the dryer and to a lesser extent the boiler, are
the ones most likely to be visible due to their height. This is because visibility
increases with height, unless there are site specific circumstances that counteract
this effect. The Stage 2 drier will be 4m higher than the consented Stage 1 drier,
thereby informing the visual effects baseline.

Even though the drystore is by far the largest structure in terms of site coverage, its
relatively low 13m height means that it will be substantially less visible than the taller
structures. Further its full site coverage extent cannot be readily appreciated
because all that can be potentially seen are no more than two of its four facades.

1
By Virtual View Ltd
3
Consequently its visual effects are confined to the length and height of the facades
including the visible roof, which in principal also applies to the other structures such
as the drier.

Proportion is also another consideration regarding the drystore. Because the
building is to be considerably lengthened its height to length ratio is changed
substantially in favour of the latter. Or to put it another way, the extended drystore will
display a strongly horizontal character rather than vertical. This will have the effect of
visually flattening the building or making it seem lower than it really is.

The taller driers will further cement the impression that the drystore appears as a low
slung structure. This is because the vertically proportioned driers will contrast with
the horizontally proportioned drystore. That is, each defines the proportions of other
by way of the contrast between them. This will be especially apparent in this case
because the two buildings sit side by side.

As intimated, because the drier is the taller building, it will be potentially the more
visible. At 56.2m high the Stage 2 drier will be 4m taller than the consented Stage 1
drier, although this is now to be 41.25m high. The same principals of proportion
apply to it as they do for the dry store. Because the two driers will be side by side,
the overall proportion is changed in favour of the horizontal. Consequently the two
driers in combination will appear squatter or less vertical than the single consented
drier. It will however, present greater visual bulk. Resulting from this will be a
corresponding increase in reflectivity and therefore visibility. There are however
factors present that will help overcome the increased visibility effects arising from
both the dry store, drier and boiler, which will be discussed later regarding avoidance
and mitigation.

Visual effects will also depend on vantage point location in relation to the orientation
of the proposed structures and their relationship to those consented. As noted for the
Stage 1 application, the key vantage point in terms of numbers potentially affected is
State Highway 73 and the Midland Railway. It is acknowledged however that the
same dwellings identified in the Stage 1 application also stand to be potentially
affected. These are identified on the Attachment 2 Aerial Photograph. Accompanying
the application are Photo-simulations which have been prepared showing the effects
of the Stage 2 expansion. The photo-points for these are the same as for Stage 1.
The comparable differences are listed by photo-point reference as follows.

Photo- point

01 No discernable difference

The visual effects are therefore non-existent.

02 Apparent increase in building bulk visible until year 5 which will be fully
screened by vegetation by year 10. Note that due to distance and the effects
of perspective that the Stage 2 drier does not exceed the 4m height of the
pivot irrigator shown in the foreground of the photo-simulation. The visually
affected field of view is therefore not particularly significant.

The visual effects are therefore insignificant becoming increasingly so as the
trees mature.

03 No photo-simulation is provided from this vantage point as it was The Oaks
which has since been acquired by the Applicant.
4

The visual effects are therefore not relevant.

04 From this point at the vehicle entryway the dairy plant is substantially
exposed to view. This is because some middle distance pines had to be
removed as they were recently assessed by an arborist as being unsafe to
retain. To compensate a substantial group of broadleaf exotics (oaks) will be
planted as shown in the photo-simulation. These will be 4m high at time of
planting which will immediately screen the visually complex lower half of the
dairy plant. By year 10 it will more or less be fully screened as is shown in the
photo-simulation, although there may be a fleeting glimpse of it down the
access way when travellers on SH73 pass by. The location and extent of the
oak planting is shown on the Attachment 1 planting plan.

The visual effects are therefore insignificant becoming increasingly so as the
trees mature.

05 No discernable difference

The visual effects are therefore non-existent

06 From this vantage point the change in view is the most substantial of all
points. The bulk of the Stage 2 drier is a dominant middle ground feature
which also intrudes the distant mountain skyline. The dairy plant cannot be
screened from this point as the foreground land does not belong to the
applicant. However, there are some factors that contribute to the lessening of
visual effects. One is the considerable distance from the vantage point to the
dairy plant which means that the visual bulk of the building is not overly
dominating. Or to put it another way, the surrounding rural land maintains its
prevalence. Further the key views of the background mountain peaks of the
Torlesse range remain un-obscured. Finally, the vantage point is on a road
that is little used other than by local landholders and their visitors. So the road
is not a significant vantage point when compared to SH73 and the Midland
Railway.

The visual effects are therefore significant, but at the lower end rather than
higher.

07 Although the visible bulk of the dairy plant is apparent from this view point on
Kimberley Road the structure is at such a distance that its bulk is not
domineering. Nor does the building intrude the mountain skyline in the
background.

The visual effects are therefore negligible.

08 From Landsborough Drive near Darfield the dairy plant is partially visible in
the distance. Because it is a considerable distance from this view point the
structure is not at all dominant. Further it does not intrude the mountain
backdrop skyline.

The visual effects are therefore negligible.


In relation to these vantage points the greatest extent of visual effects will occur in
respect of the east and west elevations see these in the Attachment 3 Elevations.
5
The latter shows the most affected view shafts will, as stated, project to the east and
west. The north and south axis are least affected as essentially only the top of the
proposed drier will introduce a discernably visible difference in terms of increased
building bulk. This is evident in the Attachment 1 Elevations also.

Looking east the view shaft extends from a point more or less just west of The
Oaks (now owned by the Applicant) to a corresponding point on Auchenflower
Road. The view shaft boundaries are perpendicular to these roads where a line
extending from them meets the westernmost corners of the consented and proposed
structures. Beyond that foreshortening takes effect thereby significantly reducing
potential visibility of the west facade. The same principal applies to the east faade.
Here the view shaft meets at the corner of Auchenflower and Loes Road and in the
opposite direction at the point where the vehicle entry to the plant meets SH73.

These view shafts take in all of the dwellings considered to be potentially affected by
the Stage 1 proposal, with the exception of The Oaks (which is now owned by the
applicant). And as stated, the least affected areas are going to be those views from
the north and south, the extent of which is also shown on the Attachment 2 Aerial
Photograph.

As for Stage 1, avoidance and mitigation measures are advanced with a view to
overcoming any adverse visual effects. These are discussed next.


3.0 AVOIDANCE AND MITIGATION OF ADVERSE EFFECTS

A number of measures have been taken to minimise adverse visual effects. These
mainly arise from the location of the proposed extensions in combination with the
landscape mitigation measures applying to the Stage 1 consent.

Concerning location, all of the major structures the drier and dry store, except for
the boiler are positioned further from the highway than those in Stage 1. That is,
they are extended northward
2
toward Auchenflower Road in a direction in which
there are no potentially affected dwellings. Additionally, the Stage 2 structures
effectively move away from neighbouring dwellings, and in this regard are optimally
sited so as to lessen effects as much as possible. It is acknowledged however that
location largely reflects operational requirements as was the intention regarding
Stage 1, but is nonetheless favourable to the reduction of adverse visual effects.

Clustering of the Stage 2 structures also occurs as a product of their location and
function in relation to the Stage 1 complex. This means that visual effects are
concentrated toward the core of the plant rather than dispersed. This is particularly
important with regard to the taller structures namely the driers and boiler. The
reason is that, as mentioned, they are potentially the most visible due to their height
and because of this convey the impression that the plant is compact in its overall
extent. Further, the clustering promotes visual coherence of the plant where like
structures are associated with like. It also denotes a visual hierarchy that culminates
in the driers, and so aesthetically is more visually coherent than dispersed and
apparently less well organised features.

The operational dictates of the consented and proposed Stage 2 plant will, (as noted
in the Stage 1 landscape assessment), lead to a series of buildings and accessory
structures resulting in a complex that is more or less broken down into its constituent

2
As referred to in the elevations and on site plan as Project North
6
parts. The visual effect is that the complex as whole is modulated, which substantially
reduces potential building domination. The different shapes, heights and proportions
of the various buildings and allied structures will assist in this regard. These are
apparent in the architectural drawings that accompany the application. This effect
will still apply to the Stage 2 proposal.

In order to mitigate visual effects most reliance will be placed on the provision of
landscaping, and in particular that provided for in Stage 1. Essentially this comprises
two shelterbelt plantings to be established immediately surrounding the plant and on
the outer application site perimeter. The location and extent of this planting is shown
on the consented Stage 1 landscape plan. Because the anticipated visual effects
arising from Stage 2 are concentrated around the Stage 1 structures, their mitigation
remains the same. Consequently there is no need to provide landscaping additional
to that proposed for Stage 1 as it will adequately screen the Stage 2 extensions.

To illustrate visual effects arising from the Stage 2 proposal and their mitigation a
series of photo-simulations have been prepared.
3
The simulations are taken from the
same vantage points as that for Stage 1, and show the differences between it and
the Stage 2 proposal. Also shown are the effects of mitigation. It is evident from the
photo-simulations that over time the entire plant will be screened from the key
vantage points as indicated for Stage 1. The only views that cannot be readily or
fully screened are those from the dwellings on Loes Road. There will also be some
additional interruption of the backdrop mountain skyline for these residents that will
be beyond mitigation or avoidance.

Finally regarding vegetative screening, the location of the entire plant, including the
Stage 2 proposal, also enables utilisation of existing mature pine shelter belts, whose
presence will facilitate immediate visual screening. Additionally these trees, being
quite large will help reduce potential building domination. The effect of these is also
shown in the photo-simulations. Importantly, and as for Stage 1, the existing mature
trees will provide immediate screening for those dwellings located at the junction of
SH73, Auchenflower and Bleak House Roads. And as for Stage 1, the efficacy of
vegetative screening will increase over time as trees mature. Implementation is
being carried out at the present moment, and so will be established, although
immature, once Stage 2 gets under way.

Turning to colour, it was noted by the Councils landscape architect
4
regarding the
Stage 1 proposal that lighter tones will better prevent the effects of silhouetting
against a sky backdrop. As a result it was recommended by the Council to remove
the proposed dark colour logo field at the top of the building. The Stage 2 extension
will adopt the same colours as that for Stage 1, also minus the logo field.
Consequently the taller building while increasing reflectivity will better align with the
lighter colour and tones of its sky backdrop when viewed from the various vantage
points.

Overall, the avoidance and mitigation measures that apply to Stage 1 are equally
effective for Stage 2. There is no need therefore to implement additional measures,
and so no further conditions of consent are offered. So while the Stage 2 extensions
will substantially add to the collective bulk of the dairy plant, the visual effects will
nonetheless be ultimately negligible in the presence of the Stage 1 avoidance and
mitigation measures. Resulting from these, all of the lower portions of both the Stage
1 and 2 dairy plant will be fully screened from all potentially affected parties. The

3
Prepared by Virtual View Limited
4
Mr Tony Milne
7
taller components, namely the drying tower and boiler stacks, will remain visible to
some parties, and invisible to others. However, the other avoidance measures such
as generous setbacks, clustering, appropriate colour scheme and modulation will
help to reduce effects considerably.


4.0 DISTRICT PLAN LANDSCAPE MATTERS

The District Plan matters concerning landscape outcomes discussed in respect of
Stage 1 are equally applicable to Stage 2. It is the intention therefore not to enter into
a detailed level of discussion regarding these except as a reminder of what their
general direction is. This is summarised as follows:

That the rural area accommodates a variety of activities allowing for primary
production and other business activities, including those which are derived
from rural production such as dairying. [SDP Policy B.3.4.1]

That significant adverse amenity effects arising from activity is to be avoided,
remedied or mitigated. [Policies B3.4.3 and B3.4.4]. The explanation and
reasons recognise that large sites are often needed for certain activities such
as dairy plants, and that generous separation from neighbours is an effective
avoidance method that large sites enable. The Stage 2 extensions will
achieve this.

That building density will be maintained at a low level in the Rural Zones
along with a predominance of vegetation cover [B3.4.5]. This policy outcome
is delivered by the site coverage rule which is is 5%.
5
The combined Stage 1
and 2 activities will be less than 1% where the remaining land area will be
devoted to vegetative cover in the form or pasture and shelterbelt plantings.

That high rise buildings are to be avoided. Of all the objectives and policies
this is the most difficult to achieve due to the height of the all driers exceeding
the permitted maximum 12m height limit. The Stage 2 drier will compound the
effects arising from height. As discussed though, the avoidance and
mitigation measures, including generous setbacks, will overcome the adverse
effects arising from this. This is evident in the photo-simulations that
accompany the application.

That adverse effects from night lighting be avoided [Policy B3.4.9]. As for
Stage 1, this will be screened by shelterbelt planting around the dairy plant
perimeter.

That buildings are sufficiently setback from property boundaries so as to
maintain privacy and outlook for neighbours in addition to a sense of open
space [Policy B3.4.16]. As for Stage 1 the Stage 2 extension will be
generously setback from neighbouring properties at the very least 650
metres.


As for Stage 1 the objectives and policies clearly contemplate the kind of activity
proposed, and therefore the effects this will have on the landscape. They are
however, mindful that such activity has the potential to generate adverse effects, and

5
SDP Rural Rule 3.11.1.1(b)
8
where this occurs it is a requirement that they are either avoided or mitigated. The
principle landscape effect will arise from tall buildings namely the Stage 1 and 2
driers; the height effects of which Policy B3.4.6 seeks to avoid. For the most part
these are addressed through avoidance measures namely via the generous
setbacks from road frontages and adjoining properties. Very low site coverage also
counters any adverse effects arising from building height, as does the proposed
colour scheme. The existing and proposed shelter belt planting, which is being
planted at present, is located as close as possible to affected vantage points. With
the exception of Loes Road residents, this will fully screen the taller structures from
these vantage points as is evident in the photo-simulations. As a consequence of
these proposed avoidance and mitigation measures, it is concluded that any adverse
effects arising from building height will be successfully avoided and mitigated with
respect to most potentially affected parties when considered within the context of the
District Plan objectives and policies.


5.0 CONCLUSION

In summary the greatest cumulative visual effect is going to arise from the presence
of the combined Stage 1 and 2 driers. In combination they have the potential to
dominate the landscape and potentially interrupt views. While the dry store in site
coverage terms is by far the larger building, because of its relatively low height it will
be easily screened within a very short time frame. Although taller than the drystore,
the Stage 2 boiler will also be effectively screened reasonably quickly. This is only
from the points where existing mature shelterbelts are not able to provide immediate
screening as is shown on the accompanying photo-simulations. In time all planting
will mean that from most vantage points the dairy plant in its entirety will be screened
from key vantage points. This will be especially so from where planting is proximate
to the vantage point which means that screening is effective within a very short time
frame.

The visual effects are otherwise avoided through the substantial setbacks and
clustering of structures. The plant including the Stage 2 extensions will still appear as
a coherent co-location of structures that are visually related to each other. Further,
and most importantly they will not appear sporadic or erratic, leading to the dispersal
of visual effects.

Finally, as for Stage 1 the Stage 2 proposal is favoured by the District Plan provisions
concerning visual amenity and landscape change with the exception of building
height effects. Nonetheless the Plan contemplates such activity in the Outer Plains
Rural Zone including specific identification of dairy plants, providing any adverse
effects are avoided, remedied or mitigated. In this regard the proposed plant has
been optimally located, with a view to minimising adverse visual and landscape
effects. The mitigation currently being implemented in respect of Stage 1 will further
and equally counter any visual effects arising from the Stage 2 proposal. Short of
this there is nothing more that could possibly be offered without compromising or
precluding the proposal.


Andrew Craig
Landscape Architect
June 2011