Fonterra Invests $75 Million in Clandeboye Butter Plant Expansion

Fonterra has initiated a significant expansion of its butter production capabilities at the Clandeboye site in South Canterbury with an investment of $75 million. This project is part of Fonterra's broader strategy to invest up to $1 billion over the next three to four years in value-generating projects that drive operational efficiency.

The construction phase began with demolition, followed by excavation, foundation, and drainage work, setting the stage for the new butter process hall. Concurrently, new piping infrastructure will connect milk treatment operations to the butter line. The structural development of the building is expected to be visible by April.

The expansion is designed to increase production capacity and enable the production of a diverse range of butter formats, including Halal and Kosher, to cater to international demand. This move not only enhances Fonterra's South Island manufacturing network but also provides 16 new jobs in South Canterbury.

Clandeboye site manager Ross Burdett commented on the development, highlighting the positive impact on the local community and the cooperative's manufacturing network. The commissioning of the new line is scheduled for early 2027, with the first product anticipated by April next year.