Fonterra commits to $165 million Australian expansion

Posted by Andrea Hogan on 24th January 2018

Fonterra will be spending millions on expanding its Victorian and Tasmania manufacturing facilities as the dairy giant strives to meet demand for Australian dairy.

Detailing a commitment originally flagged in November 2017, the New Zealand dairy co-operative says it will be spending AUD $125 million on expanding its flagship Stanhope cheese facility in northern Victoria. The investment will double the size of the cheese plant.

Fonterra will also spend AUD $12 million on expanding its Wynyard cheese plant in Tasmania and increasing its lactose processing capacity in Spreyton, Tasmania.

A further AUD $7 million will be spent expanding the Darnum nutritionals plant in Gippsland, Victoria and on the installation of two robotic palletisers in Bayswater, Victoria.

AUD $13.5 million will be used on projects at Cobden and another AUD $8.6 million at Dennington in Victoria.

Demand for trusted Australian dairy

Rene Dedoncker, Managing Director of Fonterra Australia, said customers want trusted dairy supply options out of Australia.

“We have a clear strategy that is delivering sustainable returns,” Dedoncker said.

“To create value, we need to invest to stay ahead of the demand curve. These investments support our aim to secure positive returns back to our farmers on both sides of the Tasman.”

Fonterra playing to its strengths

Dedoncker said Fonterra will be playing to its strengths in cheese, whey, nutritionals and butter, increasing production capacity to meet rising demand both from within Australia and overseas.

Dedoncker further stated more capacity needs more milk and Fonterra Australia is working hard to secure this.

“Our Australian milk pool has grown by 400 million litres this season, and with this new investment we plan to grow our milk further which we expect will come through growth from our existing farmers who wish to grow, coupled with milk from new suppliers joining Fonterra,” Dedoncker said.

Fonterra Australia’s total milk intake currently sits at two billion litres in Victoria and Tasmania.


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