Fonterra invests US$22M to expand UHT cream production at Waitoa

USA – Fonterra has announced a US$22 million investment to expand cream production at its Waitoa plant.

According to the company, the move is expected to boost the facility’s ultra-high temperature (UHT) cream processing capacity by up to 30,000 metric tonnes annually. 

The investment will also create four new jobs at the site as Waitoa takes over the production of Anchor UHT cream, which was previously handled at the Takanini plant.

Ben Robinson, General Manager of Specialty Products at Fonterra, described the expansion as an important milestone for the company’s growth strategy. 

“This is an exciting time for Waitoa as we strengthen our production capabilities to meet growing demand,” he said. 

The investment comes as Fonterra plans to enhance its food service business in China and globally, focusing on high-value dairy products. 

The move follows a US$140 million commitment to a new UHT cream plant in Edendale, Southland, which created 70 jobs.

Fonterra’s Waitoa site already produces a range of food service items and UHT milks. 

The increased demand for UHT cream, particularly from China’s central kitchen market, has been a key factor driving this expansion. 

These central kitchens supply multiple restaurants, chain bakeries, and supermarkets, contributing to a projected global demand growth of over 4% annually through 2030 and beyond.

Meanwhile, Fonterra has announced a separate US$150 million investment in electrification projects across New Zealand’s North Island over the next 18 months, a move aimed at reducing the company’s reliance on fossil fuels. 

The investment will fund the installation of electric boilers at key sites, including Whareroa, Edgecumbe, and Waitoa, as part of efforts to decarbonize operations and improve energy efficiency.

Anna Palairet, Fonterra’s Chief Operating Officer, emphasized the importance of this transition. “With the phasing out of coal boilers last year, our next step is reducing gas dependency with energy solutions that are not only sustainable but also affordable and reliable,” she said. 

The Whareroa site will receive US$64 million to install two electrode boilers, expected to cut annual emissions by approximately 51,000 tonnes. 

Edgecumbe will see a US$57 million investment aimed at transitioning to renewable energy, projected to lower emissions by 28,000 tonnes annually. 

Following the recent closure of its last coal boiler, Waitoa will receive an additional US$18 million to install two Resistive Element Boilers, enhancing heat production and energy reliability.

In addition to upgrading energy infrastructure, Fonterra is introducing six electric tankers as part of efforts to decarbonize its fleet. 

The company anticipates that this initiative will contribute to a significant reduction in fuel costs while advancing its environmental goals. 

Fonterra has set a target to reduce its Scope 1 and 2 greenhouse gas emissions by 50.4% by 2030, based on a 2018 baseline, as it continues to pursue sustainability-driven investments.