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Fonterra plans a UHT plant to meet Asian demand

'Products from the new plant will be bound for Asia markets and that will allow us to concentrate all our domestic UHT production – including Fonterra Milk for Schools – at Takanini in Auckland,' an executive says.

March 19, 2013

The farmer-owned New Zealand co-operative Fonterra announced in late February that it will be investing more than NZ$100 million (about USD$823.7 million) in a new UHT milk processing plant at its Waitoa site in the Waikato, New Zealand.

Fonterra Chief Executive Officer Theo Spierings said the new plant would enable the co-operative to meet growing demand for UHT products in Asia.

“The new plant will enable us to increase our UHT production by 100 per cent over the next few years. The plant will include five new UHT lines that will produce a range of products including UHT white milk and UHT cream for the foodservice sector.

“Products from the new plant will be bound for Asia markets and that will allow us to concentrate all our domestic UHT production – including Fonterra Milk for Schools – at Takanini in Auckland.”

“Milk supply in New Zealand is seasonal because it follows the grass growth curve. However UHT production requires year round milk supply so we will be talking to our farmers about the opportunity for more of them to take up winter milk contracts. This will enable them to take advantage of the milk price premium that these contracts include.

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