Fonterra Invests $75 Million to Boost Butter Production in New Zealand

The expansion will include the construction of a new butter line, which will boost the site's capacity by up to 50,000 metric tonnes of butter per year. This facility will produce various butter formats designed for global ingredient customers and professional kitchens, ensuring compliance with halal and kosher standards for export markets. Mike Hurrell, CEO of Fonterra, emphasized the importance of this expansion in aligning with the company's focus on high-value dairy products.

Fonterra's Chief Operating Officer, Anna Palairet, noted that the expansion is part of a broader strategic asset roadmap that supports long-term growth in high-value dairy categories. The expansion will also create 16 new jobs, contributing positively to the local economy. Construction is scheduled to commence in December 2025, with commissioning expected in early 2027 and the first production run anticipated in April of that year.

This marks Fonterra's third major investment in the South Island within the past year. Previously, the company allocated $75 million to develop an advanced protein hub at Studholme for high-protein ingredients targeted at medical and sports nutrition markets, with an expected launch in early 2026. Additionally, Fonterra invested £150 million in a new UHT cream plant at Edendale to expand its capacity for high-value foodservice products. A recent $64 million project at Clandeboye also saw the conversion of two coal boilers to wood pellets, aligning with Fonterra's plan to eliminate coal use by 2037.