Fonterra expands UHT cream production to meet demand from China

Fonterra is increasing its production capacity to meet growing demand in China for UHT cream.

Fonterra has recently completed a new one-litre UHT line at its Waitoa site in New Zealand’s North island. However, with continued growth, the company has already begun construction on a second line, which will produce an additional 45 million litres per year for consumers across Asia, the Middle East and the Caribbean.

Fonterra Director Global Foodservice Grant Watson says it’s an exciting time for Fonterra as more people — particularly in China — dine out on Western-style cuisines. UHT cream is becoming more popular among consumers who are seeking a product with the fresh taste of dairy that won’t over whip and holds its shape for longer.

Fonterra grew its combined consumer and foodservice volumes in Greater China by 48% in FY16, a figure Watson says makes Fonterra an industry leader.

“Our global foodservice business is growing at three times the rate of the rest of the global foodservice industry, which is testament to the popularity of New Zealand dairy in some of our biggest markets,” Watson said.

Fonterra Chief Operating Officer Global Operations Robert Spurway says the two new lines will more than triple the site’s capacity of one-litre UHT cream.

“Once we’ve installed both lines in August, we will be able to produce more than 120 million one-litre packs per annum.”

The total cost of the expansion is $35 million. It will create 26 new jobs.