Fonterra, a leading New Zealand-based dairy cooperative, has announced plans to close its canning and packaging site in Hamilton, Waikato. The decision, expected to affect around 120 jobs, aligns with the company’s strategy to shift toward high-value dairy ingredients. The closure is set for July 2025, and consultations are underway to support impacted employees.
Fonterra, New Zealand’s largest dairy cooperative known for exporting dairy products globally, has announced a major operational shift that will lead to the closure of its canning and packaging facility in Hamilton, Waikato. The move, aimed at streamlining operations and focusing on high-value dairy ingredients, will affect around 120 employees.
The facility, located on Foreman Road, is responsible for blending and packaging milk powders. It currently processes up to 4,000 metric tons annually—just a small portion of Fonterra’s overall output. The closure is scheduled for July 2025, giving the company time to carry out a formal consultation and support process for impacted staff.
It’s been a tough day for all the team at the site. These decisions are never easy, and we understand the impact this has on our people.”
Anna Palairet, Fonterra’s Chief Operating Officer
Palairet noted that declining product volumes and increased production complexities have made the site economically unviable. The company has committed to exploring redeployment opportunities within its wider operations for the affected employees.
The closure is part of Fonterra’s strategic pivot toward advanced proteins, medical nutrition, and food service, which it believes will bring greater value to its farmer shareholders. The cooperative is prioritizing investments in areas better aligned with its long-term vision.
We believe the best way to achieve this is to focus on our strengths and scale in ingredients and food service.”
Anna Palairet, Fonterra’s Chief Operating Officer
The Canpac facility’s closure reflects broader changes in the global dairy landscape, where consumer demand is increasingly shifting toward value-added and specialty nutrition products.
