Fonterra unveils NZ$32m expansion at Eltham cheese facility

New Zealand-based dairy exporter Fonterra has unveiled a NZ$32m expansion project at its Collingwood Street plant in Eltham, Taranaki, New Zealand.

The project will increase the company’s slice-on-slice cheese processing capabilities at the site; the product is mainly used in fast food products such as hamburgers and sandwiches.

Work on the expansion is slated to commence in early 2014 and is expected to be completed in mid-2015.

The expanded capacity and improved processes will allow Fonterra to meet the increasing demand from its foodservice customers across the world.

The foodservice segment comprises full and quick service restaurants, bakeries, cafes, hotels, airline catering facilities and other commercial kitchens.

Fonterra Foodservice director René Dedoncker said, "Our foodservice business has grown 9% in volume over the past three years and the profitability of foodservice has increased 11% in the same period.

"This investment in slice-on-slice cheese is in response to fast-growing demand throughout Australasia, Asia and the Middle East."

Dedoncker noted that the latest investment reflects the co-operative’s efforts to strengthen its business in the foodservice industry.

International demand for cheese is being driven by eating out of home trends, particularly in Asian markets.

"Our results last year showed a 45% normalised EBIT growth in foodservice for our Asia, Africa and Middle East business. We also achieved double digit growth in China where foodservice grew 28%," Dedoncker added.