Fonterra has announced a $75 million expansion of its Studholme site in South Island, New Zealand, to enhance its production of high-value protein ingredients. This expansion aims to meet growing global demand for advanced dairy products and aligns with Fonterra’s sustainability goals by converting to coal-free energy.
Fonterra, a globally renowned dairy cooperative, has announced a substantial $75 million investment in expanding its Studholme site in the South Island. This strategic initiative aims to transform the facility into a leading center for high-value protein ingredient production, underscoring Fonterra’s dedication to advancing its premium ingredients business. Known for its expertise in dairy production and commitment to sustainability, Fonterra leverages cutting-edge dairy science and its extensive network of farms to meet diverse global consumer needs, reinforcing its position as a major player in the international dairy market.
Expansion Details
The expansion at Studholme will significantly enhance Fonterra’s capability to produce advanced protein products, which are increasingly in demand globally for applications in medical nutrition and high-protein sports products. Miles Hurrell, Fonterra’s CEO, emphasized the strategic importance of this project, stating, “We are at the forefront of dairy science, leading in the production of dairy proteins and advanced ingredient solutions. Expanding our Studholme facility will allow us to meet growing global demand and deliver enhanced returns to our farmers.”
Richard Allen, President of Fonterra’s Global Markets Ingredients division, highlighted the projected growth in global demand for high-protein dairy products, estimating an increase of nearly USD 10 billion over the next four years, with a 7% annual growth rate. The expansion is expected to strengthen Fonterra’s existing customer relationships while creating new business opportunities.
Construction at the Studholme site is scheduled to begin next month, with the first batch of products anticipated by 2026. The expansion will not only boost protein production but also continue the site’s role in processing milk from the South Island, a function it has fulfilled since Fonterra’s acquisition in 2012.
The expansion project includes the creation of six new roles and will engage numerous contractors from the Canterbury region. Additionally, it supports Fonterra’s sustainability goals by converting the site’s existing coal boiler to a coal-free alternative, aligning with the cooperative’s commitment to eliminate coal use by 2037.
The investment in Studholme underscores Fonterra’s dedication to innovation and sustainability, positioning the cooperative to meet increasing global demands for high-value dairy ingredients while enhancing its operational efficiency and environmental stewardship.
