Fonterra has fast tracked a $12 million expansion of its Waitoa plant to produce more whipping cream because of rising customer demand.
The project to add another production line at the factory producing ultra high treatment (UHT) products was planned for 2018. It is now set for completion in February and will be at full capacity by April next year, creating 14 full time jobs at the site and producing 40 million cartons of whipping cream a year.
Fonterra builds the capacity of its food service products based on customer orders, Fonterra Director Global Foodservice Grant Watson said.
Fonterra’s UHT plant at Waitoa is expanding with a new production line capable of producing 40 million cartons of whipping cream a year.
“The fact we have needed to bring the project forward is a good sign of dairy’s growing popularity in China and points to the strength of our teams in market who are identifying that demand and converting it into sales.”
Fonterra’s recent annual result showed total sales in its foodservice portfolio have increased “exponentially”, growing 15 per cent on last year.
Fonterra chief operating officer of global operations Robert Spurway said the new line would bring the site’s total UHT capacity up to 112,000 packs per hour.
“This new line enables us to expand our operations to send more of our farmers milk to higher value products and keeps us on track to meet our ambition of foodservice becoming a $5 billion business by 2023.”