Wide Open Agriculture and NAB finance agreement in oat milk manufacturing

The agreement aims to support WOA's plans to expand manufacturing of plant-based beverages in Australia.

The stacked financing strategy consists of an $8 million loan, which can be used towards the domestic production of oat milk and debt financing of up to $12m.

This includes WOA's brand, Dirty Clean Food's oat milk product, as well as an upcoming line of plant-based drinks which combine oat milk and Buntine Protein, a plant-based protein grown under regenerative practices in the Wheatbelt.

WOA chief financial officer Matthew Skinner said the financing would assist the company in a time of market volatility.

"This uplift in available working capital will support the financing capability of the company in this time of market volatility and uncertainty," Mr Skinner said.

"This will preserve shareholder value as we progress the commercialisation strategy of Buntine Protein, whilst also enabling us to achieve the strategic growth of Dirty Clean Food through domestic manufacturing of our carbon neutral oat milk."

WOA chief executive officer Jay Albany said he was grateful for the support of NAB.

"We are grateful to our friends and supporters at NAB as we pursue a stacked finance model for production of plant-based food and beverages," Mr Albany said.

"The access to debt funding will allow us to continue to grow our presence in plant-based food and beverages and follow through on our commitment to domestic production concurrent with our launch of Buntine Protein enhanced oat milks.

"WOA looks forward to a long and productive relationship with NAB as the company continues its growth trajectory."

WOA said it's expecting to provide an update to the market on the timing and costs of the project by the end of the financial year.

With immediate access to the funds, WOA expects the total costs of production per litre to be "significantly reduced" thanks to lower shipping costs, and reduced tariffs in Asia.

Dirty Clean Food's oat milk is currently distributed nationally and internationally in Singapore, Hong Kong and Taiwan, with plans to distribute in Malaysia and Indonesia this year.

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Its Australian production will allow 'grown and made in Australia' labelling and attributes, and WOA's regenerative farming practices and carbon neutral status will support a 'clean and green' status.

NAB executive Jeff Pontifex said the bank valued sustainable agribusiness.

"NAB is committed to advancing the sustainability agenda within the Agribusiness sector and supporting value-added manufacturing in Australia," Mr Pontifex said.

"We are excited to work with WOA and hope that this is the beginning of a longstanding, mutually beneficial relationship as WOA pursues innovative plant-based manufacturing projects in Australia."