Fonterra to strengthen milk processing capacity in New Zealand

New Zealand-based multinational dairy co-operative Fonterra is set to strengthen its milk processing capacity in the country with a new milk powder plant at its Pahiatua site in the Manawatu.

The company said that its board of directors has approved plans to invest NZ$235m for the project, which would increase its processing capacity by 2.4 million litres each day.

The investment comes on the heels of the co-operative’s recent opening of a milk powder drier at its Canterbury site.

It is part of the company’s strategy to cater to the increasing global demand for dairy nutrition, especially for whole milk powder.

Fonterra NZ operations director Robert Spurway said, "This new drier in Pahiatua will help drive greater efficiencies across our manufacturing footprint.

"Last season we set a new record for the most milk collected in one day and overall milk production has been increasing by roughly 3% each year."

"This drier will help us process the extra milk in a way that delivers the most value to our farmers," Spurway added.

The drier will incorporate advanced energy-efficient processing technology, reusing its own condensate, and the waste water generated at the site will be treated for use in irrigation.

Preliminary works on the site have commenced, while the construction of the drier and associated infrastructure is slated to begin this month and the first milk powder from the drier is expected to roll out of the site by September 2015.

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Image: The investment is part of Fonterra’s strategy to cater to the increasing global demand for dairy nutrition. Photo courtesy of Alessandro Paiva.