Fonterra announced last month it will be investing more than $100 million in a new UHT milk processing plant at its Waitoa site in the Waikato.
Fonterra chief executive officer Theo Spierings says the new plant would enable the co-operative to meet growing demand for UHT products in Asia.
“The new plant will enable us to increase our UHT production by 100 per cent over the next few years. The plant will include five new UHT lines that will produce a range of products including UHT white milk and UHT cream for the foodservice sector.
“Products from the new plant will be bound for Asia markets and that will allow us to concentrate all our domestic UHT production – including Fonterra Milk for Schools – at Takanini in Auckland.”
Mr Spierings says that together with the construction opportunities and the creation of an additional 50 jobs, the development would provide new opportunities for Fonterra farmers in the North Island.
“Milk supply in New Zealand is seasonal because it follows the grass growth curve. However, UHT production requires year round milk supply so we will be talking to our farmers about the opportunity for more of them to take up winter milk contracts. This will enable them to take advantage of the milk price premium that these contracts include.
“A recent survey of our farmers indicated that a good proportion of them in the Upper North Island would be keen to take up winter milk contracts,” Mr Spierings says.
The Waitoa site was selected for a number of reasons. Firstly, the site has the space required to build the new plant and utilises much of the existing infrastructure which is zoned for expansion already. Secondly, Waitoa is well connected with a rail link and it is close to the Port of Tauranga.
The new plant will create approximately 50 new permanent jobs at the plant as well as around 150 building contractors during the construction phase.
This project has been given a high priority and work will commence quickly.
Earthworks on the project began in March with expectations that the new plant to be fully commissioned in March 2014. Product will start to roll off the line soon after that.
