Makarewa is a small community north of Invercargill (the southernmost city in the South Island within Southland of New Zealand).
The line through Makarewa has since been incorporated into the Ohai Branch and only freight services operate.
While Southland produces oats, the country lacks an oat milk processing facility and is forced to import the product from Australia.
In July 2022, Economic and Regional Development Minister Stuart Nash confirmed the New Zealand Government had loaned the company NZ$6 million to building the factory.
The NZ$50 million factory is due to be complete in late 2023 and can produce 80 million litres of oat milk per year.