The new manufacturing line is a direct response to rising global demand for butter. Once operational in 2027, the line is projected to nearly double the site’s annual butter production capacity to 70,000 tonnes. This substantial volume increase is strategically aimed at supplying global ingredient customers and professional kitchens worldwide, positioning Fonterra to capture greater value from the international milk fat market and supporting the co-op’s long-term growth objectives.

The product mix from the expanded facility will be sophisticated and highly targeted. The new line will produce traditional churned lactic butter—an European-style product popular in Middle Eastern and Western bakery products—as well as unsalted butter for both ingredients and food-service customers. Crucially, the plant will also be equipped to meet specific market requirements, generating butter products with Halal and Kosher certifications to support targeted growth in specialized international markets.

This major capital expenditure is a key component of Fonterra’s commitment to invest up to $1 billion over the next three to four years, as signaled by CEO Miles Hurrell. Chief Operating Officer Anna Palairet emphasized that the Clandeboye upgrade is part of a broader strategic roadmap to improve network flexibility and resilience across the South Island. Furthermore, this focus on high-value milkfat products directly aligns with the co-op’s stated strategy to mitigate the impact of lost earnings following the aforementioned sale of its consumer brands business.