Fonterra breaks ground on US$43.5M butter plant expansion 

NEW ZEALAND – Fonterra has begun its (US$43.5 million) $75 million butter plant expansion at its Clandeboye site in South Canterbury. 

The build is part of Fonterra’s commitment to invest up to $1 billion over the next three to four years in projects that generate further value and drive operational cost efficiencies. 

The expansion is key to the Co-op’s strategy to lift returns from high‑value dairy through value‑added milkfat products and improved product mix.

The project moved into a significant new phase in January, with the design stage nearing completion and on‑site construction activity set to increase over the coming weeks.

“The new butter line will allow us to produce a wider range of butter formats for customers around the world, while creating 16 new jobs here in South Canterbury and strengthening the Co-op’s South Island manufacturing network,” said Ross Burdett, site manager, fonterra Clandeboye

Demolition has begun and will be followed by excavation, foundation and drainage works – paving the way for construction of the new butter process hall. 

At the same time, work will soon begin to install new pipes linking milk treatment to the butter line. Offsite building of key equipment is tracking well. The exterior of the new building extension will start to become visible by April as the structural footprint takes shape.

The new butter line will increase capacity and expand the site’s ability to produce a wider range of butter formats, including Halal and Kosher options, supporting demand from international ingredients customers and professional kitchens.

The investment also strengthens Fonterra’s South Island manufacturing network by building greater flexibility and resilience into the Co‑op’s processing footprint.

Fonterra Clandeboye Site Manager, Ross Burdett, noted that the expansion represented an exciting development for both the site and the local community.

He explained that construction was already underway and that the new butter line would enable the production of a wider range of butter formats for customers globally.

He added that the project would create 16 new jobs in South Canterbury and further strengthen the Co-op’s South Island manufacturing network, describing it as a very positive step for both the site and the Co-op.

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