New Zealand-based multinational dairy co-operative Fonterra plans to invest more than NZ$100m ($82.44m) to set up a new ultra-high temperature (UHT) milk processing facility at its Waitoa site in Waikato.
This move is a part of Fonterra's efforts to cater to the growing demand for UHT products in Asia.The investment is expected to double Fonterra's UHT production over the next few years.
The facility will feature five new UHT lines that will produce a variety of products including UHT white milk and UHT cream for the foodservice sector.
Fonterra chief executive officer Theo Spierings said the development will create around 50 new jobs and provide opportunities for Fonterra farmers in the North Island.
"Products from the new plant will be bound for Asia markets and that will allow us to concentrate all our domestic UHT production - including Fonterra Milk for Schools - at Takanini in Auckland," Spierings said.
As UHT production requires year round milk supply, the co-operative plans to offer winter milk contracts to more farmers, which will enable them to take advantage of the milk price premium that these contracts include.
Meanwhile, Fonterra has announced a five-point plan which gives its farmer shareholders more flexibility in managing their farm businesses in order to support and grow milk production.
