Fonterra continues to invest for Foodservice growth
Fonterra is investing a further $22 million at its Waitoa UHT site to support growth in its Foodservice business.
The expansion will increase the site’s cream processing capability by up to 30,000 metric ton per year and create four new roles at the site.
This follows a $140 million investment in UHT cream capacity at the Co-operative’s Edendale site announced last year.
These investments align with Fonterra’s strategy to grow its Foodservice business in and beyond China and increase production capacity for high-value products.
Global demand for UHT cream is expected to grow by more than 4% annually till beyond 2030*.
Fonterra General Manager Specialty Products, Ben Robinson, says it’s an exciting time for the Waitoa site as it continues to grow to keep up with this increasing demand.
The site was built just over 10 years ago, and this is the third expansion since then, so it’s great to see the continued growth of UHT and our Foodservice business.
"The site was built just over 10 years ago, and this is the third expansion since then, so it’s great to see the continued growth of UHT and our Foodservice business."
In addition to the new cream lines, new packaging formats will be introduced including a 10-litre bag in a box format. This format is a major growth area in China fuelled by the growth of kitchens that service several restaurants, known as central kitchens, and some bakeries supplying goods into chain stores and supermarkets.
Currently, the Waitoa UHT site produces the Co-op's flagship foodservice UHT cream product, Anchor Whipping Cream, and various UHT milks. The expansion will enable the site to expand its portfolio to include the Anchor UHT creams currently produced at Fonterra’s Takaanini site.
*Fortune Business Insights