Owaka Butter Factory

Otago

28 Oct

Dates: 1923-1973
Location: 3 Inn Street, Owaka, Otago (-46.449013, 169.660437)
Registration No: 328
Brand name: OWAKA; CANOE

Foundation and Establishment (1922-1923)

The Owaka Co-operative Dairy Company Limited was incorporated on 28 July 1922, with authorised capital of £10,000 subscribed by farmers from the Owaka district. Its establishment marked an important step in the development of dairying in the Catlins, providing local farmers with a co-operative means of processing and marketing their dairy produce. The proposal attracted considerable interest but also prompted debate about the need for additional butter-making capacity in Otago and the potential for competition between dairy companies. The new company moved quickly to establish its operations, advertising for a manager and secretary and calling tenders for a butter factory. Construction was underway by late August 1922, with the substantial brick building designed by Dunedin architect Leslie D. Coombs and built by Charles Bragg also of Dunedin. The factory was officially opened on Wednesday, 10 January 1923 before a crowd of around 400 people. Equipped with modern machinery, including a large churn capable of producing more than a ton of butter a day, the new facility represented a significant investment in the future of dairy farming in Owaka and the wider Catlins district.

First directors - see image above for names of directors

John Hurley

Early Challenges and Rapid Improvement (1923-1928)

The company’s first season was financially difficult, recording a loss of £898 and carrying a heavy overdraft. NZ Truth criticised the factory’s rotten financial aspect and noted that nearly four times more money had been borrowed than shareholders had invested. Despite this rocky start, the factory quickly improved its operations and butter quality. By 1925 Owaka won the Otago Winter Show factory butter competition with 96 points, outperforming major Otago factories. Continued financial discipline saw the bank overdraft reduced from £7,651 in 1924 to just £320 by 1929, allowing the release of the directors’ joint guarantee.

Award-Winning Butter

During the 1930s, the company built a reputation for producing high-quality butter, earning recognition in South Island competitions. In 1935, the company donated a new trophy to replace the Taieri & Peninsula Cup. Manager Mr E. G. Henderson achieved multiple first prizes, including success with the factory’s silver cup for export butter. Maintaining quality depended on both modern equipment and the cream supplied by local farmers, while production remained vulnerable to seasonal conditions. A severe dry spell in 1935, for example, contributed to a substantial fall in output compared with the previous year. In December 1939, the company installed a modern freezing room unit calculated to meet the company’s freezing and cool storage requirements for many years to come. During the Second World War, the company continued production and paid regular dividends, although rationing reduced the profitability of local sales. The factory also played an important role in sustaining the local dairy industry. At the company’s 1944 annual meeting, chairman Peter Laughton encouraged farmers to remain in dairying rather than switch to sheep farming, particularly as the country sought to increase dairy production.

The company first used the OWAKA brand for its butter before switching to the CANOE brand at least as early as 1941.

Post-war Modernisation and the End of Production

After the Second World War, the Owaka factory invested in improved machinery to maintain production. Following a breakdown that forced cream to be sent to Dunedin for processing, a larger churn was installed, helping the factory increase its output. Production reached 189 tons of butter in the 1949–50 season, while the factory’s CANO brand appeared in official listings from 1958 although it was introduced at least as early as 1941. The company’s operations were overseen by a succession of managers, including Messrs G. D. Johnson, E. G. Henderson and E. G. Elgar, who served from 1943 to 1961. By the early 1970s, however, declining supplier numbers and the end of exporting signalled the factory’s waning fortunes. Butter manufacture ceased in October 1972, bringing to an end approximately fifty years of co-operative production in Owaka. The company’s registration was cancelled on 25 July 1973, and its land, buildings and extensive plant were subsequently offered for public auction. The factory buildings had various uses including to store cars. Part of the factory building was destroyed by fire in 1980 but another part is still standing as at October 2026.