Fonterra to develop $100m UHT plant

Fonterra will invest more than NZ$100 million in a new UHT milk processing plant at its Waitoa site in the Waikato region of New Zealand.

Fonterra CEO Theo Spierings said 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% over the next few years,” Spierings said. “The plant will include five new UHT lines that will produce a range of products including UHT white milk and UHT cream for the food-service 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.”

Spierings said 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,” Spierings said.