increase font size
Mark Leslie, director New Zealand manufacturing, says the decision to close the site has not been made lightly.
Fonterra has today confirmed the permanent closure of its Kaikoura site, following the conclusion of staff consultation.
Mark Leslie, director New Zealand manufacturing, says the decision to close the site has not been made lightly.
"While it is difficult for the people involved, we have a responsibility to our farmer shareholders and unit holders, and our customers to be as efficient as possible across our business, especially given the low milk price," says Leslie.
Kaikoura's cheese volumes will be split between Fonterra's Lichfield, Clandeboye, Stirling and Whareroa cheese plants, where cheese production is up to 16 percent more cost effective than at Kaikoura.
Leslie says the co-op has a long history in Kaikoura and staff and farmers feel a strong connection with the site.
"We are conscious that this is a difficult time for some local farmers, staff and their families, and the wider Kaikoura community. We are doing what we can to support them through this change," he says.
"Based on consultation, around half of the site staff have indicated their interest in redeployment elsewhere in the co-operative, and we are confident we will be able to meet their wishes.
"While we obviously would prefer to retain all of our staff, for those who are interested in moving on we will be providing assistance in their search for new roles outside of the business," says Leslie.
The final day for processing at the site is expected in mid to late April.
OPINION: There is zero chance that someone who joined Fonterra as a lobbyist, then served as a general manager of Fonterra's nutrient management programme, and sat on the board of Export NZ, a division of lobbyist group Business New Zealand, doesn't understand that local butter (and milk and cheese) prices are set by the international commodity price.
Kiwis love their butter, and that's great because New Zealand produces some of the best butter in the world. But when the price of butter goes up, it's tough for some, particularly when many other grocery staples have also gone up and the heat goes on co-operative Fonterra, the country's main butter maker. Here the co-op explains why butter prices are so high right now.
An A$2 billion bid for Fonterra's Oceania business would be great news, according to Forsyth Barr senior analyst, equities, Matt Montgomerie.
The Government’s directive for state farmer Landcorp Farming (trading as Pamu) to lifts its performance is yielding results.
State farmer Pāmu has appointed Roz Urbahn as its new chief corporate services officer.
It took a stint at university to remind Otago dairy farmer Megan Morrison that being stuck in a classroom was not for her.
Farmer lobby group Federated Farmers has announced it is supporting a new Member’s Bill which it says could bring clarity to New Zealand farmers and save millions in legal costs.
DairyNZ has announced the date for its upcoming Milksolids Levy vote.
Federated Farmers says climate protest group Greenpeace is manufacturing outrage and attempting to scare New Zealanders with headlines that have no basis in science.
New Zealand Food Safety (NZFS) says it is supporting importer Goodfood Group in its decision to recall Food Snob and Mon Ami brand French Brie and Camembert cheeses.
New Zealand's dairy industry is right to call out Donald Trump over the damage the additional 15% tariff the US is imposing on our exports but also imposition on lower tariffs on our competitors.
