Fonterra to boost milk powder production in NZ

New Zealand multinational dairy co-operative Fonterra plans to invest NZ$300m ($245.20m) to set up a second drier at its Darfield milk powder plant in the Canterbury region on the South Island.

The new drier will be able to process 4.4 million litres of milk daily, about double the capacity of the existing drier.

Construction is expected to begin in a few months, and is scheduled to be completed in 2013.

Fonterra trade and operations manager Gary Romano said the first drier will be full within a few years, and the new project will help the co-operative meet the existing and future demand for milk powder.

"Our Darfield site has always been about future proofing Fonterra’s operations for milk production growth in the South Island," Romano added.

In 2009, the company announced its plans to set up a milk powder plant in Darfield, which is set to be operational from August this year.

According to the company, the plant will reduce almost 20,000km per day (on current milk volumes) travelled by Fonterra tankers on Canterbury roads and its proximity to the Port of Lyttelton will make transporting products for export more efficient.

Canterbury is considered to be the fastest-growing dairy region in New Zealand, producing about 15% of the country’s milk for export and growing at a rate of more than 5%.

The Darfield plant will supply milk powder to markets such as the Middle East, South East Asia and China.