Fonterra to Invest $75 Million in Studholme Site Expansion to Boost Protein Ingredient Production

The expansion will bolster Fonterra's capacity to produce advanced protein products, which are increasingly sought after in global markets for their application in medical nutrition and high-protein sports products. Miles Hurrell, Fonterra's CEO, emphasized that this initiative is a key part of the Co-operative's strategy to drive value by collaborating with customers who recognize the unique capabilities of Fonterra’s ingredients.

"We are at the forefront of dairy science, leading in the production of dairy proteins and advanced ingredient solutions," stated Hurrell. "Expanding our Studholme facility will allow us to meet growing global demand and deliver enhanced returns to our farmers."

Richard Allen, President of Fonterra's Global Markets Ingredients division, highlighted the growing global demand for high-protein dairy products, which is expected to increase by nearly USD 10 billion over the next four years, with a projected annual growth rate of 7%. He noted that the expanded manufacturing capacity at Studholme will enable Fonterra to strengthen its relationships with existing customers while also attracting new business opportunities.

Construction at the Studholme site is set to commence next month, with the first batch of products expected to be ready by 2026. Beyond the new protein production capabilities, the site will continue its role in processing milk from the South Island, as it has since Fonterra's acquisition of the facility in 2012.

Allen explained that a thorough review of Fonterra’s global asset network preceded the decision to expand the Studholme site. "We identified Studholme as the ideal location due to its size, modern infrastructure, and potential for future growth. Economically, this decision makes sense, and we are confident in the site's long-term viability to meet global demand for high-value ingredients," Allen remarked.

In addition to creating six new roles at the site, the expansion project will involve a significant number of contractors from the Canterbury region. The project also aligns with Fonterra's sustainability goals, supporting the conversion of Studholme’s existing coal boiler to a coal-free alternative, consistent with the Co-op’s commitment to eliminating coal use by 2037.