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Fonterra’s UHT Cream expansion plans

Fonterra chefFonterra’s UHT Culinary Cream, Anchor Food Professionals’ top selling product, has become the cream of choice for chefs in China and other parts of the world.

Culinary chefs look for a product that has the freshness of pure dairy that won’t over whip and can hold its shape for a longer time.

Fonterra has recently completed a new one litre UHT line at its Waitoa site. However, with continued growth, the co-operative has already begun construction on a second line, which will produce an additional 45 million litres each year for consumers across Asia, the Middle East and the Caribbean.

Fonterra director for Global Foodservice, Grant Watson said it’s an exciting time for the dairy giant as more people – particularly in China ­– dine out on Western style cuisines.

“People can taste freshness, and that’s what people are developing a preference for, particularly in China where dairy is really starting to take off. What our customers experience when they buy our products is a taste of pure New Zealand dairy – grass-fed and nutritious,” said Watson.

Fonterra grew its combined consumer and foodservice volumes in Greater China by 48 per cent in FY16, making the dairy manufacturer an industry leader, according to Watson.

“Our global foodservice business is growing at three times the rate of the rest of the global foodservice industry, which is testament to the popularity of New Zealand dairy in some of our biggest markets,” Watson said.

Fonterra chief operating officer for Global Operations Robert Spurway said the two new lines will more than triple the site’s capacity of one litre UHT cream.

“Once we’ve installed both lines in August, we will be able to produce more than 120 million one litre packs per annum – a clear demonstration of our value add strategy. Decisions around these expansions are based on demand for the product. So it’s a reflection of the great work our foodservice team are doing in the markets, as well as our teams at our sites to support one of the fastest growing and highest returning parts of the business,” said Spurway.

The total cost of the expansion is $35 million and creates 26 new jobs, something Spurway said is good news for the region.

“We’re always proud of the part we play in communities across the country. This expansion will not only generate energy and vibrancy within the Waitoa community, it will also help to bolster the local and regional economy by bringing new employment and, ultimately, stronger returns for our farmers,” said Spurway.

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