Fonterra has commenced work on a $150 million ultra-high-temperature (UHT) cream plant at its Edendale site in Southland, aiming to meet growing global demand for high-value dairy products. Scheduled to be operational by August 2026, the new facility is part of the co-operative’s strategic push to expand its foodservice business, particularly in China, and boost production capacity.
Groundbreaking Ceremony Marks Milestone
A ground-breaking ceremony held just before Christmas marked the start of the project, featuring a blessing by Hokonui rūnanga representative Matu Coleman-Clark. Fonterra’s general manager for operations in the lower South Island, Andrew Johns, highlighted the significance of the investment:
“This new plant represents a major step forward for Edendale and reflects our commitment to the community and our long-term growth strategy. We are excited to see the positive impact this development will have as construction progresses,” Johns said.
Expanding Capabilities at Edendale
Edendale, New Zealand’s oldest dairy manufacturing site, already houses 12 production plants, including facilities for cream, casein, milk protein concentrate, reverse osmosis, and anhydrous milk fat. The addition of the UHT plant will further solidify its position as a key hub for Fonterra’s operations.
The new facility is expected to employ 70 staff once operational and will contribute to a growing workforce of nearly 700 employees on-site. During construction, additional contractors will be employed, providing a boost to the local economy.
Meeting Growing Global Demand
Fonterra projects UHT cream demand to increase by 4% annually over the next decade, driven by rising demand in international markets. The initial phase of the Edendale UHT plant will have the capacity to produce 50 million litres of cream annually, with plans to expand to 100 million litres by 2030.
This expansion aligns with Fonterra’s broader focus on high-value dairy products, positioning the co-operative to capitalize on opportunities in premium markets worldwide.
A Step Toward Long-Term Growth
The $150 million investment underscores Fonterra’s commitment to innovation and value creation within the dairy sector. By enhancing its production capabilities and catering to growing global demand, the co-operative is reinforcing its leadership in the dairy industry while fostering economic growth in Southland.
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