Dairy giant Fonterra will invest NZ$75 million ($66 million) to expand butter production at its Clandeboye site in South Canterbury.
The funds will fund the construction of a new butter line, boosting the site’s capacity by up to 50,000 tonnes per year.
CEO Miles Hurrell said the project aligns with Fonterra’s plan to invest up to $1 billion over the next three to four years in initiatives that improve operational efficiency.
“This investment supports that goal by increasing our production of a high-value product and improving our product mix by adding value to milkfat,” Hurrell said.
The expansion will also allow the co-operative to produce a wider range of butter formats for global ingredients customers and professional kitchens, including products certified Halal and Kosher.
COO Anna Palairet said expanding the Clandeboye site strengthens Fonterra’s South Island network by improving flexibility and resilience.
“This investment is part of Fonterra’s broader strategic asset roadmap supporting long-term growth in high-value dairy categories,” Palairet said. “The expansion will create 16 new jobs at the site, supporting the local economy.”
Construction is scheduled to begin in December, with commissioning set for early 2027 and the first product expected off the line in April 2027.
