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Fonterra ramps up capacity

Fonterra website
Fonterra website

By: Angeline Yeo, Australia
Published: Jan 21, 2010

FONTERRA           MANUFACTURING

Australia - Fonterra said plans are in place to bump up cheese and whey powder processing capabilities at its dairy manufacturing sites in northern Tasmania.

The company said it will be implementing an A$11.5 million capital investment programme that will go into increasing processing capacity at Wynyard to supply Tasmanian cheese to customers on mainland Australia and overseas markets like Japan.

The investment will also go into purchasing new processing equipment at Wynyard to improve the quality of cheese produced at the site, as well as expand facilities for milk collection trucks amongst others.

"Fonterra already processes two-thirds of the milk produced in Tasmania. As a result of this investment we will be able to accept more milk from next season and Tasmanian dairy farmers can have confidence in the future of their industry," said Bruce Donnison, MD of Ingredients Australia.

After the capital program is complete, Fonterra will be able to collect an additional 200,000 litres of raw milk everyday, and will increase the company's production by 4,000 tonnes of dairy products per annum.

"This investment will unlock processing bottlenecks at Fonterra's sites in the short term while creating a foundation for a significant increase in processing capacity for Tasmania in the longer term," Donnison said.

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