Fonterra expands Edendale capacity

Fonterra has announced its plans to build a new NZ $212 million (€114m) milk powder plant on its Edendale site on the South Island.

Fonterra CEO Andrew Ferrier says the investment is in anticipation of projected growth in South Island milk supply, which is forecast to increase significantly by the 2012/13 season. “Growing the co-operative’s core business by sustainably increasing its milk supply and expanding its processing capacity is key if we are to capitalise on strong market demand for our products.

“The new dryer will manufacture regular UHT and instant whole milk powders, and will take the site’s peak processing capacity to over 15 million litres per day. It will be one of the largest powder plants in the world.”

Ferrier adds that while prices may be softening from last year’s record highs, overall demand for dairy products is growing at a rate of around 3% per annum, with demand particularly strong in China, Latin America and the Middle East. Along with whole, skim and butter milk powders, Fonterra’s Edendale site produces cheddar cheese for markets in Japan, the Middle East and the Philippines, refined and edible grade lactose, whey cheese, casein, anhydrous milk fat and whey protein concentrate. The new plant is scheduled to begin processing milk by the end of next year.