Fonterra Announces $150 Million Investment in New UHT Cream Plant at Edendale Site
Source: DairyNews.today
Fonterra has unveiled plans to invest $150 million in the construction of a new UHT cream plant at its Edendale site in Southland, New Zealand. This significant expansion is designed to meet the rising demand for dairy products through Fonterra's growing Foodservice business, particularly in Asia.
The announcement was made by Fonterra CEO Miles Hurrell during a visit to Malaysia as part of a senior New Zealand business delegation led by the Prime Minister. The investment aligns with Fonterra's strategy to increase production capacity for high-value products and to further develop its Foodservice business in Asia, where the integration of dairy into traditional dishes like laksa and milk tea is gaining popularity.
"Demand for UHT cream continues to strengthen globally, with projections indicating a more than 4% annual growth rate between 2023 and 2032," said Hurrell. "This investment is a testament to our commitment to growing value for the cooperative by expanding our capabilities in the Ingredients and Foodservice channels. It also marks the second major expansion we've announced in just a few weeks, signaling the direction in which the Co-op is heading."
The new plant at Edendale will initially add 50 million liters of UHT processing capacity, with the potential to increase beyond 100 million liters by 2030. This expansion is not only a boost for Fonterra’s production capabilities but also a significant development for the local economy, creating 70 new jobs at the plant.
Fonterra COO Anna Palairet highlighted the strategic advantages of the Edendale site, noting that the region is well-positioned for future growth, with ongoing decarbonization efforts and a reliable supply of high-quality cream. "The additional processing capacity will enable us to manufacture more UHT cream products, thereby increasing value for our farmers," Palairet stated.
The construction phase, scheduled to begin early next year, will further contribute to local employment, with additional job opportunities expected during this period. The first products from the new plant are anticipated to be ready by August 2026.
This investment follows closely on the heels of Fonterra's recent announcement of an expansion at its Studholme site, reinforcing the cooperative's commitment to enhancing its production infrastructure to meet growing global demand.
"Demand for UHT cream continues to strengthen globally, with projections indicating a more than 4% annual growth rate between 2023 and 2032," said Hurrell. "This investment is a testament to our commitment to growing value for the cooperative by expanding our capabilities in the Ingredients and Foodservice channels. It also marks the second major expansion we've announced in just a few weeks, signaling the direction in which the Co-op is heading."
The new plant at Edendale will initially add 50 million liters of UHT processing capacity, with the potential to increase beyond 100 million liters by 2030. This expansion is not only a boost for Fonterra’s production capabilities but also a significant development for the local economy, creating 70 new jobs at the plant.
Fonterra COO Anna Palairet highlighted the strategic advantages of the Edendale site, noting that the region is well-positioned for future growth, with ongoing decarbonization efforts and a reliable supply of high-quality cream. "The additional processing capacity will enable us to manufacture more UHT cream products, thereby increasing value for our farmers," Palairet stated.
The construction phase, scheduled to begin early next year, will further contribute to local employment, with additional job opportunities expected during this period. The first products from the new plant are anticipated to be ready by August 2026.
This investment follows closely on the heels of Fonterra's recent announcement of an expansion at its Studholme site, reinforcing the cooperative's commitment to enhancing its production infrastructure to meet growing global demand.
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