3 September 2024
‘Fantastic News’: 70 new Southland jobs created at Fonterra
“Fonterra’s investment in the Edendale site is a strong vote of confidence in our region’s capabilities and future.”
Fonterra is set to invest $150 million into building a new UHT cream plant at its Edendale site which will create 70 new jobs for Southland.
The new plant will initially create upward of 50 million litres of UHT processing capacity with it to grow beyond 100 million litres by 2030.
Fonterra chief operating officer Anna Palairet said the Edendale site is well set up for future growth with decarbonisation work well underway along with a good supply of high-quality cream in the region.
“The additional processing capacity will allow us to manufacture more UHT cream products and grow value for farmers.”
She added the investment was good news for the southern economy given the creation of 70 new jobs at Edendale.
Fonterra’s Edendale site currently employs more than 670 people and the expansion will increase it to around 740.
“This is great news for the local community,” Palairet said.
Additional employment opportunities will also be created through the construction phase of the plant, which is scheduled to start early next year.
The first product is expected to come off the line in August 2026.
Southland Business Chamber CEO Sheree Carey expressed her enthusiasm for the Fonterra project.
“This is fantastic news for Southland. Fonterra’s investment in the Edendale site is a strong vote of confidence in our region’s capabilities and future. The creation of new jobs and the opportunity for local businesses to contribute to this project are key factors in driving economic growth and ensuring the long-term prosperity of Southland.”
Carey said the Southland Business Chamber viewed this investment as a major milestone for the region and it underlined the importance of continued innovation and development within the dairy sector.
The Chamber looks forward to supporting Fonterra and other stakeholders in making this venture a resounding success for Southland, Carey said.
Fonterra CEO Miles Hurrell announced the news while in Malaysia on Tuesday as part of a senior New Zealand business delegation with Prime Minister Christopher Luxon.
Fonterra says it has a thriving Food service business in Asia where demand is growing by integrating dairy into traditional foods such as laksa and milk tea.
In Malaysia, Fonterra is looking to build on “solid foundations” where half of New Zealand exports to the country are already dairy.
Hurrell said the investment is part of the co-operative’s strategy to grow further value by expanding its Foodservice business in and Asia and increasing production capacity for high-value products.
The cream is used in approximately 260 million cakes in Chinese bakery stores each year, as well as 400 million beverages – demand has continued to increase since 2014.
“Globally, we’re expecting demand to increase by more than 4 per cent year on year between 2023 – 2032.
“This is the second announcement we’ve made in as many weeks about expansions at our sites to cater for growing demand.
“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,” Hurrell said.
Source: The Southland Tribune – 3 September 2024