Fonterra’s $150 million investment at its Edendale plant is a “shot in the arm for our province,’’ Invercargill MP Penny Simmonds says.
Fonterra announcement ‘a shot in the arm’ for Southland
Fonterra is set to invest $150 million to build a new UHT cream plant at its Edendale site. Kavinda Herath / Southland Times

Fonterra’s $150 million investment at its Edendale plant is a “shot in the arm for our province,’’ Invercargill MP Penny Simmonds says.

Fonterra announced on Tuesday that it will invest $150m to build a new UHT cream plant at its Edendale site, resulting in 70 new jobs, as well as those created during the construction phase of the expansion.

The new plant will produce UHT whipping cream, which is used in about 260 million cakes in Chinese bakery stores each year as well as 400 million beverages.

Simmonds said the announcement was ‘’extremely positive’’ for Southland.

“We talk about farming being the backbone of the country, and it’s exciting projects like this that really do prove the worth of dairy farming, and agriculture, to our regional and national economy,’’ she said.

“I congratulate Fonterra on having the confidence to invest in our region. We need this kind of recognition in the south – because we know that we have the people and the infrastructure to get the job done’’.

Southland Business Chamber chief executive Sheree Carey said the announcement was a strong vote of confidence in the region’s capabilities and future.

The Southland Business Chamber viewed this investment as a major milestone for the region and it underlined the importance of continued innovation and development within the dairy sector, she said.

Chief executive officer Sheree Carey said the Southland Business Chamber viewed this investment as a major milestone for the region. (File photo)
Robyn Edie / Stuff

“The creation of new jobs and the opportunity for local businesses to contribute to this project are key factors in driving economic growth and ensuring the long-term prosperity of Southland’’.

Southland district mayor Rob Scott said the investment was good for Southland and New Zealand.

“It’s really good to see that continued confidence in Southland and another 70 jobs is great as well, it keeps that trajectory in the province going up,’’ he said.

“It’s just a shame that there isn’t more investment in roading from the Government to help drive the local economy,’’ he said.

Southland was one of the strongest growing regions in the first part of the year, with a solid gain of 10 places in the growth stakes to knock Auckland off the top spot. according to an ASB report.

ASB chief economist Nick Tuffley said Southland’s ascent had been driven by strong construction and housing activity, which were the best in the country.

“We expect Southland’s sterling run to continue next quarter, with favourable farming conditions relative to other parts of the country helping revenues and confidence.”

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Farm confidence plunged earlier in the year as unusually low rainfall in many regions threatened crop yields and pastures.

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