Auckland UHT facilities added at Fonterra

Fonterra has completed a NZ$8 million (EUR4.4m) investment in its UHT milk processing facilities in Auckland, New Zealand, for meeting growing demand in Asia and the Pacific. The upgrade and expansion of its Takanini plant has created a 30 per cent increase in production capacity, equivalent to an extra 600,000 packs of UHT milk every week. Fonterra expects global consumption of UHT to increase at a compound annual rate of 5.2 per cent through to 2012. According to the company, this makes it one of the fastest growing niches in the industry and one that presents significant opportunities. The UHT milk is destined for Malaysia, Indonesia and Vietnam. Fonterra began making UHT back in 1981 and increased to 60m litres last year. With this latest expansion, annual production is set to rise to 90 m litres.
Peter McClure, MD of Fonterra Brands New Zealand, notes, “With this increased production capacity, we will be able to expand our presence in our existing markets of China, Singapore and Hong Kong as well as start exporting in to new markets such as Malaysia, Indonesia and Vietnam. Limited domestic dairy supply in Asian countries, growing populations and education about dairy’s nutritional benefits are creating this demand.” The dairy giant is also expanding its cheese and dairy ingredients operations in Tasmania.