Fonterra ploughs $6 million into ricotta transition

Fonterra will invest $6 million at its Stanhope site in northern Victoria to transition the manufacture of ricotta cheese to the site.

The expansion of the Stanhope site is part of the transfer of production from Fonterra Australia’s Cororooke site, which is slated for closure in October 2013.

The investment was also supported by a $250,000 grant from the Victorian Government’s Industries for Today and Tomorrow program.

Judith Swales, managing director of Fonterra Australia, said the investment would help ‘future-proof’ the Stanhope site and strengthen the company's presence in northern Victoria.

“It is another step towards achieving our goal of having the most competitive and sustainable dairy supply chain in Australia,” she said. “By focusing Stanhope’s production on high-value products, like ricotta cheese, we are able to increase the site’s productivity, efficiency and competitiveness.”

Fonterra said due to this transition, the ricotta line at Cororooke will remain open until April 2014, with the rest of the site closing as projected in October, and with a small number of Cororooke employees to stay on at the site to enable the transition.

Other high-value products made at Cororooke, which include shredded cheese, cream and blending and packing functions, will continue to be made in Victoria by Fonterra and third-party manufacturing partners, according to the company.