Wednesday, 15 October 2025 08:55

Fonterra to boost UHT cream production with $150m plant

Written by Styaf

font size decrease font size increase font size
Print
Email

Fonterra’s new UHT cream plant at Edendale.

With Fonterra's UHT plant at its Edendale site less than a year from completion, demand continues to grow for products the plant will produce, such as Anchor Whipping Cream.

The co-operative's foodservice channel registered a $27 million increase in operating profit for FY25 as demand continued to grow for UHT cream, butter and individually quick frozen (IQF) mozzarella.

While China is the main destination for Fonterra's foodservice products, demand is growing in Southeast Asia where restaurant chains and cafes are using more dairy in their dishes.

Jack Tan, the co-op's acting director of Southeast Asia Foodservice, says the growth reflects a broader shift in how dairy is embraced across the region.

"We're seeing strong and sustained growth in demand for UHT cream across Southeast Asia Anchor Whipping Cream is becoming a staple in many local favourites, from beverages to baked goods."

Across Southeast Asia, Fonterra's dairy products are being infused into local favourites by adapting to regional tastes and food culture. Fonterra's Anchor Whipping Cream is being used in Portuguese egg tarts in Singapore, Malaysia and Thailand. It's also gaining popularity in local beverage applications across Malaysia, Singapore, Indonesia, and Vietnam - where it's even being added to Vietnamese coffee for a creamy twist.

The $150 million investment in the Edendale UHT plant is coming along well, with the first products expected to roll off the line in August 2026.

Andrew Johns, Fonterra's general manager of lower South Island operations, says that the investment at Edendale is not just about meeting demand - it's about building for the future.

"We're really excited about this opportunity to build a new plant here in Southland and supply UHT cream for growing markets."

The plant will initially create capacity to process upwards of 50 million litres of UHT cream annually, with the ability to grow beyond 100 million litres by 2030.

Nine months since construction began in January, the site is clearly visible from State Highway 1. The walls and concrete slabs for processing and packing are in place, and most of the roof is now on. Work on the product store is progressing well, and construction of the distribution warehouse is underway. External excavation is nearly complete and foundations for the container yard are advancing steadily.

"We're making sure we deliver a safe plant that can produce high-quality product that exceeds customer expectations."

Currently, more than 50 peole are working on the build, with that number expected to grow to around 150 in the coming months as activity ramps up.

"There's good energy on site and I hope that's filtering thro

More like this

Divestment means Fonterra can focus on its strengths

OPINION: Fonterra's board has certainly presented us, as shareholders, with a major issue to consider.

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

Editorial: A new era for two co-ops

OPINION: Farmer shareholders of two of New Zealand's largest co-operatives have an important decision to make this month and what they decide could change the landscape of the dairy and meat sectors in New Zealand.

Should co-op sell its consumer brands?

OPINION: As CEO of the Dairy Board in the 1980s I was fortunate to work with a team of experienced and capable executives who made most of the brand investments that created the international consumer business Fonterra inherited. Soprole in Chile was the largest, but there were more than 20 countries where consumer marketing companies were established and Anchor and other brands were successfully launched.

Fonterra delivers $12.35 organic milk price

Fonterra has delivered a fifth straight year of record organic milk price for farmer suppliers.

Featured

Editorial: Right call

OPINION: Public pressure has led to Canterbury Police rightly rolling back its proposed restructure that would have seen several rural police stations closed in favour of centralised hubs.

From Calf Shows to Semex NZ: Rachel Cox’s dairy journey

When I interview Rachel Cox, she is driving - on her way to her next meeting.

Fonterra to boost UHT cream production with $150m plant

With Fonterra's UHT plant at its Edendale site less than a year from completion, demand continues to grow for products the plant will produce, such as Anchor Whipping Cream.

New scholarship to grow female leaders in dairy

A new $50,000 scholarship fund designed to support and empower women in the New Zealand dairy industry through leadership development has been launched.

High dairy payouts fuel record milk production across NZ

Many farmers around the country are taking advantage of the high dairy payout to get maximum production out of their cows.

Owl Farm marks 10 years as NZ’s first demonstration dairy farm

In 2015, the signing of a joint venture between St Peter's School, Cambridge, and Lincoln University saw the start of an exciting new chapter for Owl Farm as the first demonstration dairy farm in the North Island. Ten years on, the joint venture is still going strong.