Fonterra says the $75 million investment at its Studholme site will increase capacity for its protein ingredients business, a key component of the coop’s growth strategy.
Fonterra CEO Miles Hurrell said the coop’s proteins had enhanced functionality and were designed to perform in premium product applications such as medical and high-protein sports nutrition. The hub would better equip the business to partner with customers wanting to use its ingredients.
“We have valuable expertise in dairy science and innovation, making us leaders in the manufacture of dairy proteins and other advanced ingredient solutions.
“The expansion of our Studholme site will allow us to increase production of this high-value product and ultimately grow returns to farmers,” Hurrell said.
South Island of New Zealand.
(Image: Fonterra)
Site works at Studholme will begin next month with the first product due to come off the line in 2026. The site will continue to support the South Island’s milk processing as it has done since Fonterra acquired the site in 2012.
Fonterra president Global Markets Ingredients, Richard Allen, said the project team reviewed Fonterra’s world-wide asset network before deciding on the Studholme site.
“We see significant opportunities in the global high protein dairy category, which is projected to grow by close to US$10 billion over the next four years, at an annualised growth rate of 7 per cent per annum.
“Increasing our manufacturing capacity for functional proteins will enable us to continue to strengthen our offerings with existing customers as well as attract new business,” Allen said.
Fonterra expects the project will create six new roles at the site as well as a large number of contractors involved in the build that will come from the Canterbury region.
The project will also support the conversion of Studholme’s existing coal boiler to a coal-free alternative in line with Fonterra’s commitment to exit coal by 2037.
