Fonterra, a global dairy cooperative from New Zealand, plans a $150 million investment in a new UHT cream plant at Edendale, Southland. This expansion aims to meet the rising demand for dairy products in Asia and boost local production and employment. The new plant is set to increase capacity by 50 million liters, with potential growth up to 100 million liters by 2030, reinforcing Fonterra’s commitment to expanding its global dairy footprint.
Fonterra, a leading global dairy cooperative based in New Zealand, has announced a major investment of $150 million to construct a new UHT (ultra-high temperature) cream plant at its Edendale site in Southland. This expansion is set to boost the cooperative’s production capacity to meet the increasing global demand for dairy products, particularly in the Asian market through its growing Foodservice business.
Expansion to Boost Dairy Production
The announcement was made by Fonterra CEO Miles Hurrell during a visit to Malaysia as part of a senior New Zealand business delegation led by the Prime Minister. The investment is aligned with Fonterra’s strategy to increase production capacity for high-value dairy products and expand its Foodservice business in Asia, where dairy is becoming an integral ingredient in traditional dishes like laksa and milk tea.
“Demand for UHT cream continues to strengthen globally, with projections indicating an annual growth rate of more than 4% between 2023 and 2032”
“This investment underscores our commitment to adding value for our cooperative by expanding our capabilities in the Ingredients and Foodservice channels. It also marks the second major expansion we’ve announced in just a few weeks, demonstrating the strategic direction in which Fonterra is moving.”
Fonterra CEO, Miles Hurrell
Impact on Local Economy and Future Growth
The new UHT cream plant at Edendale will initially increase processing capacity by 50 million liters, with the potential to exceed 100 million liters by 2030. This expansion not only enhances Fonterra’s production capabilities but also provides a significant boost to the local economy, creating 70 new jobs at the plant.
Anna Palairet, Fonterra’s Chief Operating Officer, emphasized the strategic advantages of the Edendale site. She highlighted the region’s suitability for future growth due to ongoing decarbonization efforts and a reliable supply of high-quality cream.
“The additional processing capacity will enable us to manufacture more UHT cream products, thereby increasing value for our farmers”
Fonterra’s Chief Operating Officer, Anna Palairet
Timeline and Future Projections
Construction of the new plant is set to begin early next year, providing further employment opportunities during the building phase. The first products from the new plant are expected to be ready for market by August 2026.
This investment follows closely on the heels of Fonterra’s recent announcement of an expansion at its Studholme site, reinforcing the cooperative’s commitment to enhancing its production infrastructure to meet the growing global demand for dairy products.
