Fonterra, the dairy giant based in New Zealand, said it will invest $75 million to expand its Studholme dairy site, near Waimate. The site will become a hub for producing high-value proteins, which are designed for premium applications such as medical and sports nutrition products.
“We see significant opportunities in the global high-protein dairy category, which is projected to grow by close to US$10 billion over the next four years, at an annualised growth rate of 7% per annum,” Fonterra president for global markets ingredients Richard Allen said.
“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 are able to 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.”
Site development at Studholme is set to commence next month, with the first product expected to roll off the production line in 2026. In addition to the new protein production capabilities, the Studholme site will continue to support milk processing for the South Island region, as it has done since Fonterra acquired the site in 2012.
Fonterra anticipates opening six new roles for the project, with many contractors involved in the construction coming from the Canterbury area. The project will also support the conversion of Studholme’s existing coal boiler to a coal-free alternative in line with the company’s commitment to exit coal usage by 2037.