Plant will make Anchor Whipping Cream, a favourite for the 260 million cakes baked in China every year.
At the peak of construction 150 contractors will be working on the new UHT cream plant at Fonterra’s Edendale plant in Southland.
Fonterra announced last year it will build the $150 million plant to meet growing demand for its UHT cream in Asian markets.
Speaking at a Westpac Smarts event about shaping the future of Southland, Fonterra regional GM for operations in the Lower South Island, Andrew Johns, said although there will be some foreign expertise on site, specifically to install European machinery, the co-op is using regional talent and supporting the Southland economy.
Johns said they are a month and a half into the build, with ground broken and tenders approved.
Calder Stewart will be responsible for construction of the building.
Although efficiency is key to profitability and automating the plant is a priority for the co-op, up to 70 workers will be employed at the new plant that is slated to become operational in August 2026, he said.
The South Island location was a board decision to spread production across both of the islands.
UHT products are the co-operative’s most profitable product, and show great promise into the future as they have a projected compound annual growth rate of 4% over the next seven years, he said.
The co-operative will get to a pinch point in the next two years and reach capacity, and therefore the decision was made to build another plant, he said.
Johns said the Anchor Whipping Cream recipe has been a co-operative secret for 20 years.
The food services industry in China makes roughly 260 million cakes a year and specifically favours this cream because of its stability, he said.
Patterns on cakes made using standard whipped cream will melt and lose their shape and taste over 24 hours. Chefs use Anchor Whipping Cream because it will keep its shape, smell and taste for about 48 hours, Johns said.
Johns said only one line will initially be operational, but there is room to expand to up to four lines if demand increases.
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