NEW ZEALAND – Fonterra has officially begun construction on a US$150 million ultra-high-temperature (UHT) cream plant at its Edendale site in Southland, New Zealand, to meet global demand for premium dairy products.
The facility, which is scheduled to begin operations by August 2026, will enhance Fonterra’s foodservice business, especially in China, and increase its overall production capacity.
The project was inaugurated last year with a ground-breaking ceremony, which was attended by local representatives, including Matu Coleman-Clark from Hokonui rūnanga.
Fonterra’s general manager for operations in the lower South Island, Andrew Johns, spoke at the ceremony, emphasizing the importance of the development to both the company and the local community.
“This new plant represents a major step forward for Edendale and reflects our commitment to the community and our long-term growth strategy. We are excited to see the positive impact this development will have as construction progresses,” Johns stated.
Edendale, which is New Zealand’s oldest dairy manufacturing site, already boasts 12 production plants.
These include facilities for cream, casein, milk protein concentrate, reverse osmosis, and anhydrous milk fat.
The addition of the UHT plant is set to strengthen Edendale’s role as a central hub for Fonterra’s operations.
Once completed, the facility is expected to employ 70 staff members, contributing to the site’s growing workforce of nearly 700 employees. The construction phase will also generate additional jobs, providing a boost to the local economy.
According to a report by Fonterra, the demand for UHT cream is projected to grow by 4% annually over the next decade, driven by increasing consumption in international markets.
The first phase of the Edendale UHT plant will be capable of producing 50 million liters of cream annually.
By 2030, Fonterra plans to double this capacity, reaching 100 million liters per year. This expansion forms part of the company’s strategy to focus on high-value dairy products, enabling it to capitalize on opportunities in premium markets around the world.
The US$150 million investment in the new plant underscores Fonterra’s dedication to innovation and its ongoing efforts to create value within the dairy sector.
By expanding production capabilities and addressing the rising global demand for UHT cream, Fonterra is reinforcing its position as a leader in the dairy industry.
At the same time, the investment is set to foster economic growth in Southland, benefiting both the company and the local community.
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