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Work on site will begin next month, with the first products expected to roll off the production line in 2026.
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Dairy giant Fonterra will invest $75 million to expand its Studholme plant in South Canterbury as it plans to grow its high-value ingredients business.
The site will be a “high-value protein hub” designed for “premium” products such as medical and sports nutrition.
Work on site will begin next month, with the first products expected to roll off the production line in 2026.
“The expansion of our Studholme facility will allow us to increase production of this high-value product and ultimately increase returns for farmers,” said chief executive Miles Hurrell.
Richard Allen, Fonterra’s president of global markets ingredients, said the company was seeing global demand for its dairy ingredients.
“We see huge opportunities in the global high-protein dairy sector, which is expected to grow by nearly $10 billion over the next four years, an annual growth rate of 7%.
“Increasing our production capacity for functional proteins will enable us to continue to strengthen our supply to existing customers and attract new business.”
Fonterra’s Studholme plant near Waimate Taken over by the cooperative in 2012 and hired 47 employees, with six new positions to be added following the expansion.
The factory specialises in the production of milk powder, with all final products exported via the Port of Timaru.
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