Fonterra is set to expand its Studholme site on the South Island to create a hub for high-value proteins.
Fonterra’s proteins have enhanced functionality and have been designed to perform well in premium product applications such as medical and high-protein sports nutrition.
Fonterra CEO Miles Hurrell said the investment of around $75 million was part of the Co-op's strategy to grow value through its world-leading Ingredients business by partnering with customers who value Fonterra’s unique offering.
“We have valuable dairy science and innovation expertise, making us leaders in manufacturing dairy proteins and other advanced ingredient solutions,” said Hurrell.
“Expanding our Studholme site will allow us to increase production of this high-value product and ultimately grow returns to farmers.”
Fonterra President Global Markets Ingredients Richard Allen added the Co-op’s dairy ingredients were highly sought after by customers worldwide.
“We see significant opportunities in the global high protein dairy category, projected to grow by nearly USD10 billion over the next four years, at an annualised growth rate of 7 per cent per annum,” said Allen.
“Increasing our manufacturing capacity for functional proteins will enable us to continue strengthening our offerings with existing customers and attract new business.”
Site works at Studholme will begin next month, and the first product is due to come off the line in 2026. The plant will continue to support the South Island’s milk processing, as it has since Fonterra acquired it in 2012.
The project team had reviewed Fonterra’s worldwide asset network before deciding on the Studholme site.
“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, is relatively new, and has been built with future expansion in mind. It makes sense economically, and we’re confident in the site's longevity in long-term supply of these ingredients.”
Fonterra expects this project to create six new roles at the site, and many of the contractors involved in the build will come from the Canterbury region.
The project will also support Studholme’s conversion of its coal boiler to a coal-free alternative, in line with Fonterra’s commitment to exit coal by 2037.
