Battle for milk
OPINION: Fonterra may be on the verge of selling its consumer business in New Zealand, but the co-operative is not keen on giving any ground to its competitors in the country.
Fonterra's $231 million upgrade of its processing plant at Pahiatua has used new technology to reduce the amount of water consumed, while trebling production.
Work on adding a new drier to produce whole milk powder (WMP) started in December 2013 and a few weeks ago the first milk was processed there.
Fonterra’s managing director of global operations, Robert Spurway, says the co-op’s strong sustainability policy applies to all farmers to meet these standards, but even higher standards are imposed at its processing plants.
Visitors and staff working at plants such as Pahiatua are subject to strict and rigorous hygiene and health and safety rules.
Spurway describes the Pahiatua plant as close to a replica of the co-op’s new plant at Darfield, Canterbury. He says they have learned from building that plant, as a result building Pahiatua slightly faster and slightly under budget.
“It has slightly different design aspects at the foundation level, having isolators because of earthquake risk in this region relative to Canterbury. When it gets above the ground the design and technology is almost identical to Darfield,” he told Rural News.
“In commissioning and running [the plants]… we are getting better at it each time. So far this plant start-up has exceeded all our expectations.”
Spurway says the reason for the earthquake strengthening at Pahiatua surprises many people: 18 months ago an earthquake struck, damaging nearby Ekatahuna.
The Pahiatua plant is now processing 3.8 million L of milk per day – up from 1.4m a few months ago. It operates 24/7 and every hour produces 15.5 tonnes of WMP for sale to such markets as Cuba, Sri Lanka and Venezuela.
New technology that recycles water from the drying process is making a difference, says Bill Boakes, the Pahiatua operations manager.
“The water we are taking out of the milk here is cleaned and [used]… as potable water in the process. That’s the first time it’s has been done in a dairy plant in NZ, but it’s done in other parts of the world.”
A waste water treatment plant treats any water that cannot be recycled. This is sprayed onto three nearby Fonterra farms, where nitrogen and other loadings are monitored.
Pahiatua employs 180 staff, 45 of them extra as a direct result of the upgraded plant.
Keratin biomaterials company Keraplast and Wools of New Zealand have signed a new superpremium wool contract which is said to deliver a boost to wool growers.
While things are looking positive for the red meat sector in 2026, volatility in global trade remains a concern, says the Meat Industry Association (MIA).
The quest to find innovative practical, scientific solutions to deal with water-related issues at a catchment level has been the theme of an important conference at Massey University last week.
One of the country's top Māori farms faces a long and costly rebuild to get the property back to where it was before recent storms ripped through it.
The latest Global Dairy Trade auction results have delivered a boost to dairy farmers.
New Zealand potato growers are prioritising value creation from high yields to meet a complex mix of challenges and opportunities, says Potatoes NZ chief executive Kate Trufitt.