Fonterra is set to invest NZD $150 million to build a new UHT cream plant as it gears up to meet growing demand through its foodservice business.
Fonterra’s foodservice business is thriving in Asia, where demand is growing by integrating dairy into traditional foods such as laksa and milk tea.
The new plant, which will be built in Edendale, will initially create upward of 50 million litres of UHT processing capacity with the capacity to grow beyond 100 million litres by 2030.
Miles Hurrell, CEO of Fonterra, said the investment is part of the co-operative’s strategy to grow further value by expanding its foodservice business in Asia and increasing production capacity for high-value products.
“Demand for UHT cream continues to strengthen. Globally, we’re expecting demand to increase by more than four per cent year on year between 2023 – 2032.
“We believe prioritising our Ingredients and Foodservice channels will create more value for Fonterra and this expansion is a good example of the direction the Co-op is heading.”
Anna Palairet, COO of Fonterra, said the Edendale site is well set up for future growth with decarbonisation work well underway along with a good supply of high-quality cream in the region.
“The additional processing capacity will allow us to manufacture more UHT cream products and grow value for farmers.”
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