Fonterra begins construction on $150m facility to meet growing demand.
Fonterra has begun construction on a $150 million UHT cream plant at Edendale, Southland, planned to become operational in August 2026.
In the week before Christmas a ground-breaking ceremony was held with a blessing by a Hokonui rūnunga representative, Matu Coleman-Clark.
Fonterra’s general manager for operations in the lower South Island, Andrew Johns, said this was a long-planned project.
“The new plant is a big investment in our future here at Edendale, and we are looking forward to seeing the positive impact on our community as a whole as construction progresses.”
Around $150m will be invested in the expansion, which is part of the co-operative’s strategy to grow further value by expanding its foodservice business in and beyond China and increasing production capacity for high-value products.
Edendale is New Zealand’s oldest dairy manufacturing site and already has 12 plants, including multiple cream plants, casein plants and milk driers, along with those for milk protein concentrate, reverse osmosis and anhydrous milk fat.
Close to 700 people are employed by Fonterra on site, with the addition of the building contractors for the new UHT plant.
The new plant will require 70 staff members when operational.
Fonterra expects UHT cream demand to grow 4% annually over the next decade.
The initial build at Edendale UHT cream will cater for 50 million litres capacity annually, with room to grow to 100 million beyond 2030.
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