Thursday, 29 October 2015 15:27

Enough capacity for peak milk

Written by 
Edendale had three new plants come online in August. Edendale had three new plants come online in August.

Fonterra says its new processing plants have helped process more than 86.9 million litres of milk on the co-op's biggest day of the year – October 22.

Managing director global operations, Robert Spurway, says the additional capacity has given the co-op more options in its product mix.

"Getting the most out of large volumes comes down to having the capacity to process every drop of our farmers' milk while also striking the right balance between our ingredients and foodservice capabilities.

"This season we've been able to bring new plants online to drive greater value into both of these parts of the business," says Spurway.

A new dryer at Pahiatua and three plants at Edendale came online in August, delivering more capacity and operational efficiency in milk powders, while a new mozzarella plant at Clandeboye has doubled the co-op's capacity for one of its most in-demand foodservice products.

"We now have more options around how and where we process our milk meaning we can prioritise milk into higher margin products," says Spurway.

This also better equips Fonterra to satisfy growing and diversifying customer demand, while also being more responsive to changing market trends, he says.

To ensure milk is always directed to the products that will deliver the best returns for farmer shareholders, Fonterra reviews its product mix and priorities every 24 hours according to market demand, incoming milk volumes, product value and costs such as transport and logistics.

Further expansion is currently underway at Fonterra sites in Lichfield and Eltham to add a new milk powder dryer and slice-on-slice cheese lines respectively, with these new developments on track to be up and running in time for the 2016 peak.

More like this

Why 'Fork to Farm' Beats Farm to Fork, Expert Says

In the past, much has been made of the concept of farm to fork, but an Australian expert in food science and marketing with experience in the dairy industry, Dr Angeline Achariya, says the reverse of this slogan is critical to win modern day consumers.

Featured

Taupiri Farmers Chase Ownership After Awards Success

For Taupiri dairy farmers Logan and Sian Dawson, their involvement in the NZ Dairy Industry Awards has been a key catalyst in the growth of their business - the experience helping shape how they approach the farm ownership pathway they are pursuing today.

Ballance Urges Farmers to Plan Ahead for El Niño

With forecasters advising El Niño conditions will develop through winter and strengthen into spring and summer, Ballance Agri-Nutrients is encouraging farmers and growers to think ahead about nutrient planning and be prepared to work around challenging weather conditions.

National

Machinery & Products

» Latest Print Issues Online

Milking It

Domestic Focus

OPINION: After hogging the media limelight for telling a NZ Chinese MP to "go back home", Winston Peters has decided…

A No-Brainer

OPINION: With fuel prices soaring, one would have expected most farmers to be reclaiming excise duty on petrol.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter