The upgrade is a two-pronged strategy focused on high-value products. In addition to the processed cheese line, Fonterra is adding a new shift to its Individually Quick-Frozen (IQF) Mozzarella line. This move will boost the factory’s mozzarella capacity by 6,000 metric tonnes, which is enough to supply cheese for over 40 million pizzas a year. The strategic allocation of milk to these growing channels highlights a forward-thinking approach to dairy economics, prioritizing products that offer strong growth prospects.

This investment is directly aimed at capitalizing on the massive and expanding Foodservice market, particularly the Quick Service Restaurant (QSR) segment. The article notes that cheese from the Eltham site is already exported to more than 50 countries, with the majority of it going to major QSR customers such as McDonald’s, Domino’s, and Pizza Hut. These global brands are key partners for Fonterra, and their continued expansion drives the co-op’s own growth.

The decision to invest is based on a compelling piece of data journalism, with Fonterra citing strong global trends as the primary reason for the upgrades. Hailey Ryan noted that demand is expected to increase due to factors like population growth, urbanization, and a rising consumer preference for convenient meals, particularly among young consumers in the Asia-Pacific region. This market segment alone is forecast to grow by an impressive 7.5% year-on-year, providing a clear rationale for the strategic investment.