New Zealand-based dairy co-operative Fonterra is set to invest around $75m in expanding its Studholme site in the South Island to create a hub for high-value proteins.
The project is part of the cooperative’s strategy to enhance value through its Ingredients business by partnering with customers who value Fonterra’s unique offering.
The company’s team has reviewed its global asset network before deciding to expand the Studholme site.
Fonterra’s proteins have enhanced functionality and are designed to perform well in premium product applications such as medical and high-protein sports nutrition.
Fonterra CEO Miles Hurrell said: “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.”
Fonterra plans to begin expansion works at the Studholme site starting next month, with the first product expected to come off the line in 2026.
In addition to producing advanced proteins, the site will support South Island’s milk processing, at the same rate as the cooperative acquired in 2012.
As part of the expansion, Fonterra will create six new roles at the site and involve several contractors from the Canterbury region, for the works at the site.
The project will also support the conversion of Studholme’s existing coal boiler to a coal-free alternative, as per the cooperative’s commitment to exit coal by 2037.
Fonterra global markets ingredients president Richard Allen said: “We see significant opportunities in the global high protein dairy category, which is projected to grow by close to $10bn over the next four years, at an annualised growth rate of 7% 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.”
“It’s pleasing to see we can expand an existing site to produce these high-value ingredients. The Studholme site was chosen as it is the right size, relatively new and had been built with future expansion in mind. It makes sense economically and we’re confident in the longevity of the site to supply these ingredients for the long term.”
