Fonterra will invest NZD 240 million ($173 million) in the installation of a third mozzarella plant at its site in Clandeboye, New Zealand.
The investment will double the cooperative’s capacity for individually quick-frozen (IQF) mozzarella, and will make Clandeboye the largest production site for natural mozzarella in the southern hemisphere, Fonterra said.
Robert Spurway, chief operating officer global operations for Fonterra, says demand for this mozzarella out of China and wider Asia continues to grow as more consumers seek out natural dairy products.
“This new plant, like the two before it, uses patented technology to produce a high-quality, natural mozzarella without using chemicals in the production process,” Spurway said.
“It is the only process of its kind in the world that can significantly reduce production time while still remaining 100% natural – something our customers and their consumers place great value in.”
“It is one of our key product differentiators and has helped make mozzarella one of the most in-demand of our foodservice products. Once this expansion is complete, Fonterra’s mozzarella sales will have increased by more than 60% since 2008 when the first IQF plant was built.”
The technology has been supported by a Primary Growth Partnership programme between the Ministry of Primary Industries, Fonterra and DairyNZ.
Spurway said that prioritising these types of value-add investments is central to the cooperative’s strategy.
“Driving strong returns will always be at the heart of our business and turning our farmers’ milk into higher value products is key to this. At the same time, we are required to accept and process all milk which has meant we have needed to focus on capacity first rather than always investing in the highest value products.
“While the need to keep pace with milk volumes has certainly had an impact on how we invest, we have not sat back from our commitment to keep pushing milk up the value chain.
“We have continued to back ourselves through savvy investment in the right products, the right innovations to differentiate our products, and the right people to engage our global customers and sell them on pure New Zealand dairy.”
The plant will double Fonterra’s capacity for individually quick-frozen mozzarella.
The new expansion will capture every cent of value from the milk. New plants will process the whey and lactose created in the cheese making process – both valuable dairy ingredients. A new wastewater treatment plant will ensure the plants operate sustainably, Fonterra said.
The company’s chief operating officer global consumer and foodservice Jacqueline Chow added that Fonterra’s IQF mozzarella is already topping more than half the pizzas in China, and continues to grow in market share.
“40% of people in urban China now eat at Western-style fast food outlets once a week, and the use of dairy in foodservice has grown by over 30% in just five years.
“We see massive growth potential and our teams in the market are continually working to grow this valuable part of the business as we work towards foodservice becoming a $5 billion business by 2023.
“This new plant will go a long way to helping us achieve this. Our foodservice investments are always based on demand so it’s good to see this one follow so close behind last year’s expansion.”
Work has already begun on the expansion, with the first product destined for markets in September 2018. More than 1,000 people will be involved in the project during this time, with the plant creating full-time employment for 100 people in and around South Canterbury.
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