New Zealand dairy group Fonterra will invest NZD 150 million ($112 million) to build two cream cheese plants in response to growing demand from Asia.
Both located at the cooperative’s Darfield site, the first will be completed by August next year and will be a similar scale to the new cream cheese plant built at Te Rapa. Construction on the second unit will finish in 2019 or 2020.
Fonterra’s director of global foodservice Grant Watson believes the investment is timely as more consumers in Asia develop a preference for milk-based products.
“What’s really promising are the trends we’re seeing in cheese, butter and UHT over the years – not just in the sale of dairy products, but how they are being consumed,” he said.
“Particularly as the major urban centres in China shift away from oils, people are actively seeking more dairy in their diet whether in their cooking, as a table spread or in a glass.”
Fonterra COO, global operations, Robert Spurway said this investment will be a significant for the cooperative and is a good demonstration of its strategy in action.
“This is not just about expanding our capability in manufacturing, it’s another marker in our strategy to continue delivering better returns to our farmers,” he said.
“What’s particularly exciting with this project is our ability to innovate with new technology that opens up all manner of new possibilities in some of our key markets.”
© FoodBev Media Ltd 2019