Fonterra announced yesterday (3 Sep) that it was establishing a new $150m UHT cream plant at its Edendale factory.

Fonterra CEO Miles Hurrell said the investment was 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 4 per cent year on year between 2023 – 2032," he said.

“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.”

The new plant will initially create upward of 50 million litres of UHT processing capacity with the capacity to grow beyond 100 million litres by 2030.

Invercargill MP Penny Simmonds said Fonterra's announcement yesterday was extremely positive for Southland.

“This multi-million dollar expansion is a shot in the arm for our province, with 70 new jobs to be created, as well as other employment opportunities through the construction phase of the expansion."

“There’s a sense of optimism around dairy farming in the South at the moment, with the recent increased payout announcement last month and now this investment, boosting positivity."

“We talk about farming being the backbone of the country, and it’s exciting projects like this that really do prove the worth of dairy farming, and agriculture, to our regional and national economy."

“I congratulate Fonterra on having the confidence to invest in our region. We need this kind of recognition in the South - because we know that we have the people and the infrastructure to get the job done."

“Edendale is this country’s longest running dairy manufacturing site, already employing over 600 people, and it’s a credit to all of the staff that this project has been ear-marked for the South."

“Innovation and the pioneering of high value ingredients have always been key to Fonterra’s success, and it’s exciting that the company has chosen to invest in Southland with this latest expansion."

“The new plant will increase production capacity of the company’s Foodservice whipping cream, and help Fonterra keep pace with the growing demand in Asia.”