Wednesday, 24 September 2014 14:49

Fonterra investing in NZ

Written by 

Fonterra chief executive Theo Spierings says the co-op is investing $750 million to lift processing capability over the peak processing months.


The co-op hopes to lift New Zealand processing capability by 8.2m litres/day by 2016; this includes lifting Litchfield plant's capability by 4.4mL/day, Edendale 1.4mL/day and Pahiatua 2.4mL/day.


Spierings says very strong milk flows and an extended peak season stretched the co-op's powders capacity and forced it to make lower-returning products.


"We fast-tracked investments to expand our New Zealand capacity and undertook immediate projects to maximise output from existing plants," he says.


"As these have come on stream we have announced further investments to keep us ahead of the milk curve and provide more options for the most profitable end use of our farmer shareholders' milk.


"This gives us more flexibility with what we make and where we make it and lifts our operational efficiency."


Spierings says Fonterra can meet customer demand and keep its farmgate milk price competitive by having New Zealand sites focus as much as possible on products with higher stream returns.


Apart from investment in processing capability, the co-op has also spent $260m on plants supplying products to the foodservice industry.


About $72m was spent at the Clandeboye plant in Canterbury to double grated mozzarella capacity.


At the Eltham site, $32m was spent on boosting slice-on-slice cheese making; at Te Rapa another $32m was spent on cream cheese production.

More like this

El Niño Summer: Terravest on Preparing Dairy Sheds Now

After a winter of frozen pipework and refrigeration call-outs, Terravest chief executive Kip Bodle and chief operating officer Luke Walker explain why this El Niño summer calls for a different kind of preparation, before the first heatwave finds the weak points for you.

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

Editorial: Drones Are Not Toys

OPINION: David Seymour and James Meager's plan to make it easier for farmers and orchardists to operate drones can best be described a 'courageous' move.

Opuha Dam Commissions New Valve in Major Flood Safety Upgrade

Opuha Dam's ability to protect South Canterbury communities from major flooding has taken a significant step forward, with Opuha Water Limited (OWL) successfully commissioning a new outlet valve capable of releasing record volumes of water from the dam ahead of a weather event.

National

Machinery & Products

» Latest Print Issues Online

The Hound

'LinkedIn Greens'

OPINION: The same mainstream media muppets that brought you Jacindamania in 2017 have been flat out pimping for the Opportunities…

UK Warning

OPINION: Your old mate reckons the atrocious way farmers in the UK are treated by their lords and masters in…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter