Fonterra is investing $150M to triple UHT cream capacity at Edendale. The expansion meets surging Asian demand for foodservice products like Anchor cream by August.
Fonterra's $150M Power Play UHT Cream Production Triples

Construction Workforce Swells as Edendale Plant Races to Meet Explosive Asian Demand for Anchor Whipping Cream by August Launch.

Fonterra is making a substantial investment in its foodservice division with a $150 million expansion to its ultra-high temperature (UHT) cream plant at the Edendale site in Southland, New Zealand. This strategic capital expenditure is a direct response to soaring demand from Asian markets for premium products like Anchor whipping cream. The project is designed to significantly enhance Fonterra’s manufacturing capability and future-proof its ability to supply high-value, long-life dairy products to international customers.

The scale of the project is massive, both in terms of production and labor. The facility is expected to initially process over 50 million litres of UHT cream annually, with projections indicating the capacity will more than double to over 100 million litres by 2030. To complete this expansion, the construction workforce currently on site is set to triple in the coming months, swelling the team to 150 contractors. This highlights the immediate economic benefit and urgency of the co-operative’s timeline.

Construction is proceeding rapidly, having begun in January. General Manager of Lower South Island operations, Andrew Johns, confirmed that significant progress is already visible. The walls and concrete slabs for the processing and packing areas are in place, and most of the roof is now on. Furthermore, external excavation work is nearly complete for the product store and distribution warehouse, with foundations currently being laid for the essential container yard.

The entire project is structured around a tight deadline, with the co-operative anticipating the first UHT products to roll off the new production line in August of the following year. This timing is crucial to quickly capitalize on the growing demand, particularly within the lucrative foodservice sector of Asian markets, where UHT cream offers a key competitive advantage due to its extended shelf-life and stability.

Ultimately, the Edendale investment underscores Fonterra’s strategy of capitalizing on growing markets and strengthening its position in value-add dairy. By focusing on products like UHT cream, the company is prioritizing investment in divisions that yield higher returns, aligning with the broader international dairy trend of moving beyond commodity ingredients and building for a more resilient, demand-driven future.

Source: Find the complete report on this major construction project in the Otago Daily Times.

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