Fonterra investing NZ$75m to expand its protein ingredients

Dairy co-op Fonterra is set to expand its Studholme site in the South Island of New Zealand to create a hub for high-value enhanced proteins. Its proteins are designed with enhanced functionality, making them suitable for applications such as medical and high-protein sports nutrition.

The company will invest around NZ$75 million, as part of the Co-op’s strategy to grow value through its ingredients business by partnering with customers who value the company’s offering.

Site works at Studholme will begin next month with the first product due to come off the line in 2026. In addition to producing advanced proteins, the site will continue to support the South Island’s milk processing as it has done since Fonterra acquired the site in 2012.

The company expects six new roles to be created as a result of this project and a large number of contractors involved in the build will come from the Canterbury region.

The project will also support the conversion of Studholme’s existing coal boiler to a coal-free alternative in line with the company’s commitment to exit coal by 2037.

Fonterra CEO Miles Hurrell said: “The expansion of our Studholme site will allow us to increase production of this high-value product and ultimately grow returns to farmers.”

Fonterra President Global Markets Ingredients Richard Allen said: “We see significant opportunities in the global high-protein dairy category, which is projected to grow by close to US$10 billion over the next four years, at an annualised growth rate of 7% per annum.

“Increasing our manufacturing capacity for functional proteins will enable us to continue to strengthen our offerings with existing customers as well as attract new business.”

Image credit: iStock.com/MurzikNata