Trade Resources Company News Fonterra’s Australian Business Invests $93.9m in Modern Cheese Facility

Fonterra’s Australian Business Invests $93.9m in Modern Cheese Facility

New Zealand-based dairy cooperative Fonterra’s Australian unit is investing NZD$141m ($93.9m) in the construction of a modern cheese facility at its Stanhope factory premises.

Fonterra’s Australian Business Invests $93.9m in Modern Cheese Facility

The new facility will be constructed in place of the hard cheese plant, which was destroyed in a fire accident in December 2014. The modern facility will produce cheeses for Australian foodservice industry and consumers and for export markets.

Fonterra Oceania managing director Judith Swales said: "Today's announcement is strategy in action, where we are delivering on our strategic plan to transform our Australian business and return it to strong and sustainable profitability.

"We are focusing on areas where we can win in a highly competitive market, and that means optimising our product mix and investing in higher value add products that will deliver the best returns for our farmer shareholders. Rebuilding and expanding our Stanhope cheese plant is key to this."

The new facility is expected to produce 45,000t of different types of cheeses such as parmesan, gouda and mozzarella, which is a 15,000t increase in capacity over the previous plant.

Judith Swales said: "As the branded market leader in the A$1.95 billion retail cheese category, with Bega, Mainland and Perfect Italiano commanding 23 per cent market share, the new plant will supply our Australian consumer and foodservice businesses, and export markets.

"It will leverage our footprint in 100 markets and also the recent free trade agreements with China, Japan, and Korea."

The new cheese plant is integral to the company's multi-hub strategy which entails optimum utilization of its ingredients strengths in cheese, whey and nutritionals which will be complemented by the company's food service and consumer businesses. The new cheese facility will provide whey to Darnum and Dennington plants, which are considered as core strengths of the company's Australian nutritionals business.

The project will generate 30 jobs and is supported by the Victorian Government through its Regional Jobs and Infrastructure Fund.

The construction of the new plant is slated to begin in 2016 and expected to be completed in 2017.

Julia Swales said that the establishment of new plant was an indication to the farmers in north Victoria that the future of the milk industry is secure and that the new plant would need the development of the local milk pool by 2020.

Image: From left to right - Fonterra director of Marketing Kiril Simonovski, Australian Dairy Farmers CEO Ben Stapley, Fonterra director of operations and supply chain Stuart Martin, Bonlac Supply Company chairman Tony Marwood, Minister for Agriculture Jaala Pulford, Shire of Campaspe CEO Jason Russell, Shire of Campaspe Mayor Leigh Wilson. Photo: Courtesy of Fonterra Co-operative Group.

Contribute Copyright Policy