New UHT Cream Plant at Fonterra’s Edendale Site to Create 70 Jobs

• Fonterra is investing $150 million in a new UHT cream plant at its Edendale site.
• Invercargill MP Penny Simmonds praises the expansion, which will create 70 new jobs.
• The project will enhance production capacity and support the growing demand in Asia.

Fonterra has announced a $150 million investment to build a new UHT cream plant at its Edendale site in Southland. This development is part of the company’s strategy to meet increasing demand in its Foodservice business, particularly in Asia, where dairy is becoming more integrated into local cuisines.

Invercargill MP Penny Simmonds welcomed the news, saying, “This multi-million dollar expansion is a shot in the arm for our province, with 70 new jobs to be created, as well as other employment opportunities through the construction phase of the expansion.” She added that this announcement, along with the recent increased payout for dairy farmers, is boosting positivity in the region.

Fonterra CEO Miles Hurrell shared the investment news while on a business delegation visit to Malaysia with the New Zealand Prime Minister. Hurrell noted the global demand for UHT cream is expected to grow by over 4% annually from 2023 to 2032. This announcement follows another recent expansion, signalling the Co-operative’s focus on enhancing its Ingredients and Foodservice channels.

Penny Simmonds emphasised the importance of such projects for the local economy, saying, “We talk about farming being the backbone of the country, and it’s exciting projects like this that really do prove the worth of dairy farming, and agriculture, to our regional and national economy.” She also congratulated Fonterra for its confidence in investing in the South, highlighting that Edendale, the country’s longest-running dairy manufacturing site, already employs over 600 people.

The new Edendale plant will initially process upwards of 50 million litres of UHT cream, with plans to expand this capacity to over 100 million litres by 2030. Fonterra COO Anna Palairet mentioned that the site is well-prepared for future growth, with ongoing decarbonisation efforts and a steady supply of high-quality cream in the region.

Palairet also noted the positive impact on the South Island economy, with the creation of 70 new jobs, and additional employment opportunities during the construction phase. The first products from the new plant are expected to be available by August 2026.

Editors note: This article has been updated to include a statement from local MP Penny Simmonds.