Fonterra expands butter production at Clandeboye with $75m investment
Fonterra is boosting its butter production capacity to meet growing demand.
However, the Costco team signed off the plant within two hours, making it the shortest audit in the US giant’s history.
The $50 million butter plant officially opened this morning by Matamata-Piako District Mayor Ash Tanner, has two production lines - a bulk line for global customers, global restaurant and food service customers, and a second line pretty much designated to the American Costco chain which has signed a three-year supply contract with Open Country.
Open Country chief executive Mark de Latour says credit for the plant must go to their engineers, designers TGL Group and the level of technology and investment put in owners, Talleys Group.
He also thanked farmers who supply milk to Open Country. Many of them attended the opening.
“You guys have put a lot of faith in us, and it's been a long time coming - getting butter into our Open Country suite, but this is a big deal for us, and hopefully a big deal for you too.
“Open country pride themselves on offering farmers choice. It's a tough industry, but what drives us is giving farmers choice so they can concentrate on being the best farmers in New Zealand, best farmers in the world, without having to worry about their manufacturing of the supply or the processing.”
Talleys Group directors Andrew Talley and Milan Talley also attended the opening. Andrew refused to answer media questions.
Open Country chair Laurie Margrain also thanked farmers.
Margrain told farmers that they were the most important people in the room.
“Sure, we've got the people who fund it, the people who govern it, and the people who manage it. But without your milk, we'd have nothing.”
In his speech, Mayor Tanner says the investment in the butter plant builds on the strong platform already created by the existing production facility.
“What's happening here is more than just a new building. It's a vote of confidence.
“It's confidence in our district, in our farmers, and in the future of New Zealand dairy.”
The butter plant is located at the Waharoa site, one of six milk processing facilities owned by Open Country. The company has over 1100 farmer suppliers.
