Fonterra

Alert Dairy

Fonterra closes several dairy facilities in New Zealand

April 15, 2024 - By our team of market reporters

Dairy cooperative Fonterra is closing down several old facilities on New Zealand's North Island and plans to utilize the milk supply from these for producing higher value-added products. Additionally, the dairy producer aims to benefit the environment with this move. However, no facilities will be shut down. 

Fonterra's Production Director for New Zealand, Alan van der Nagel, mentioned that the old facilities in Waitoa and Te Rapa have served their purpose, but more efficient facilities are now available, allowing for the production of other higher value-added products. Two older powder towers in Te Rapa will be shut down in May, resulting in reduced coal usage.

Fonterra still relies largely on coal for energy supply, but efforts are being made to change this, albeit not rapidly. However, the closure of old towers accelerated this transition. Another facility in Waitoa will also be closed, but this is scheduled for the end of 2024. Approximately forty job positions will be lost there, but Fonterra believes that affected workers can likely be redeployed elsewhere. No facilities will be shut down.

Conversely, production will be increased in two other locations on the North Island. More lactoferrin will be produced in Hautapu in the coming years, while the production of caramelized milk powder will be expanded in Pahiatu. The former is utilized in various health foods, including infant formula, while the latter is used in bakery products and ice cream.

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