Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Fonterra Builds New Clandeboye Milk Powder Drier

Media Statement 29 August 2003

Fonterra Builds New Milk Powder Drier at Clandeboye Plant

Fonterra has announced plans to expand its Clandeboye South Island site with a new milkpowder drier to be operational for the 2004/2005 season.

Fonterra's Director Operations, Mr Max Parkin says the expansion is all about maximising payout to farmers through increasing Fonterra's milkpowder capacity and product mix flexibility.

"The co-operative is earning good returns on milkpowder and this trend is expected to continue well into the future." Mr Parkin says Fonterra considered several locations for expansion, and the Clandeboye plant was the logical choice. The decision to expand Clandeboye takes advantage of the existing site scale and leverages the skills of the current staff.

"Fonterra's challenge is to match customer demand with milk supply. Therefore it makes sense that any plant expansion in New Zealand should take place in the region where milk supply can satisfy the new drier capacity. Forecasts are showing milk volumes in Canterbury will grow by about 6% a year over the next five years, which is a perfect match for this drier capacity," says Mr Parkin.

Mr Parkin says the new drier will also ensure the co-operative meets long-term customer demand for milk powder and is consistent with Fonterra's strategic objective of being the world's lowest cost commodity producer.

"The creation of Fonterra has allowed us to dramatically shorten the distance between our manufacturing teams and customers. The result is a much improved customer service level. Output of the new drier is focused on the Asian market."

Mr Parkin says new port infrastructure also supports plant expansion at Clandeboye.

"Fonterra, in partnership with PrimePort, has recently built new storage facilities at the Timaru Port. This infrastructure will support the increased volumes of product shipped to overseas customers from the Clandeboye plant," says Mr Parkin.

The new drier has the capacity to process 3,700m3 of milk per day.

Fonterra estimates approximately 25 local jobs will be created by the expansion.

- ENDS -

© Scoop Media

Business Headlines | Sci-Tech Headlines


CO2 And Water: Fonterra's Environment Plans

Federated Farmers support Fonterra’s bold push to get to zero emissions of CO2 on the manufacturing side of the Co-operative, both in New Zealand and across its global network. More>>


Fisheries: Decision To Delay Monitoring ‘Fatally Flawed’

Conservation group representatives say a decision by the new Minister of Fisheries, Stuart Nash, to delay implementation of camera monitoring of fishing efforts in New Zealand is ‘fatally flawed’. More>>


Kaikōura Quakes: One Year On

State Highway One and the railway were blocked by damage and slips and the Inland Road suffered significant damage. Farms, homes and businesses suffered building and land damage. Power and internet went down, drinking water systems, sewage systems and local roads were all badly affected... More>>