The dairy co-operative says the plant is an example of how higher-value products can overcome continued volatility in dairy prices.
Hundreds packed a marquee on Thursday next to the Clandeboye facility as top executives said more innovation was needed to add value to the milk farmer-shareholders produced.
Fonterra director and Fairlie dairy farmer Leonie Guiney told workers, farmers and government representatives a global dairy oversupply meant many dairy farmers were «in crisis mode», but the official opening of the $72 million plant, which began operating in May 2015, was «a milestone».
The co-operative’s global operations managing director, Robert Spurway, said the facility, which employs about 100 of the site’s 865 workers, was capable of making enough stretchy cheese for 300 million pizzas.
The manufacturing process, which operations manager Steve McKnight said reduced mozzarella production times from three months to six hours, remained a secret, and a tour of the facility itself was out of the question.
Spurway a new Ultra-Hight Temperature milk facility at Waitoa and other developments around the country showed Fonterra could turn farmers’ milk into higher-end products.
Speaking after the ceremony, he was more circumspect about the prospects for a proposal to expand Fonterra’s Studholme dairy factory to include two new milk dryers. Spurway said there was «no specific commitment» and «no specific timeframe» for the expansion. The company lodged resource consent applications with Waimate District Council and Environment Canterbury in August 2015.
Spurway rejected suggestions an expansion of the Studholme plant would be inconsistent with the co-operative’s «volume, value and velocity» strategy to «drive more value from every drop of milk». He said some varieties of milk powder could be «extremely functional».
MP for Rangitata, National’s Jo Goodhew, said mortgagee farm sales might rise if low dairy prices persisted, but she preferred to focus on support farmers received from rural support trusts, «churches, accountants, banks» and other organisations.
Federated Farmers poll results released last week found 11.1 per cent of farmers surveyed felt they were under pressure from banks over their mortgages, a figure which rose from 6.6 per cent in August 2015.
Economic Development Minister Steven Joyce, who also attended the opening, said despite the dairy industry being «in the spotlight for the wrong reasons», he remained confident in its long-term prospects and those of «other high-quality food products» as incomes in the Asia-Pacific region grew and customers acquired «more westernised» tastes.
Although he acknowledged growth in economic activity in China appeared to be slowing, Joyce said that growth was «off a much larger base» than it used to be.
Joyce said government payments which contributed to Fonterra’s research into mozzarella production occurred partly because «we want the Temukas to succeed, we want the Timarus to succeed».
Giving a blessing for the new facility, Arowhenua marae upoko Tewera King said the Clandeboye factory was vital to the area.
«Fonterra saved this town,» King said.
Source: Stuff
