Fonterra is set to build a new Edendale site.
Fonterra has invested $150 million to build a new UHT cream plant at its Edendale site in Southland to meet growing demand through its food service business.
Fonterra CEO Miles Hurrell shared the news in Malaysia on a senior New Zealand business delegation with the Prime Minister.
Fonterra has a thriving food service business in Asia, where demand has been growing because of the integration of dairy into traditional foods such as laksa and milk tea. It has been looking to solidify foundations where half New Zealand's exports are already dairy in Malaysia.
Hurrell said the investment was part of the cooperative’s strategy to grow further value by expanding its food service business in Asia and increasing production capacity for high-value products.
“Demand for UHT cream continues to strengthen. Globally, we expect demand to increase by more than four percent yearly between 2023 – 2032. This is the second announcement we’ve made in weeks about expansions at our sites to cater to growing demand,” said Hurrell.
“We believe prioritising our Ingredients and Foodservice channels will create more value for Fonterra, and this expansion is a good example of the direction the Co-op is heading.”
The new plant will initially create upward of 50 million litres of UHT processing capacity, with the capacity to grow beyond 100 million litres by 2030.
Fonterra COO Anna Palairet said the Edendale site was well set up for future growth with underway decarbonisation work and a good supply of high-quality cream in the region. The additional processing capacity would allow manufacturing more UHT cream products and grow value for farmers.
The investment was also good news for the South Island economy.
“Adding to the six new roles created through the recently announced expansion at our Studholme site, we will create an additional 70 new jobs with this new plant at Edendale. This is great news for the local community.”
Additional employment opportunities will be created through the construction phase, starting early next year. The first product is expected to come off the line in August 2026.
