August 1, 2022
Fonterra to close milk powder plant in South Island, New Zealand
Fonterra has announced on August 1 it will be closing a milk powder plant at its site in Brightwater, South Island, New Zealand.
However, milk collection and associated activities will continue at Brightwater as Fonterra moves its milk transfer activities there from Tuamarina.
The small aging plant processes about 0.25% of the dairy co-operative's overall milk supply into whole milk powder. Fonterra chief operating officer Fraser Whineray said the move, which will instead see the milk being processed at Fonterra's Darfield site, is in line with Fonterra's long-term strategy.
"We know milk supply is declining over time, flat at best, so we need to make sure we're getting the most out of every drop of milk and optimising our plants to match both consumer demand and available milk supply," Whineray said.
"Part of our long-term strategy is to direct more milk into our Foodservice and Consumer business, less into Ingredients, and in some cases, to divert product away from the Global Dairy Trade auctions. This, along with forecast capital and maintenance costs, means we've made the tough decision to close our milk powder plant at Brightwater.
"We're continually working to ensure our assets across the country are as efficient as they can be, changing product mixes and moving more milk into value-add products."
Thirty employees will be impacted by the closure of the milk powder plant and Whineray said the priority right now is supporting them.
"It's no doubt tough news for some of the Brightwater team and we'll be working with them in the coming months on their future options, including re-deployment opportunities within the co-op."