If that wasn’t busy enough, Fonterra was also getting ready to install new pipes that linked milk treatment to the butter line, and Murphy said off-site fabrication of key equipment was progressing well.
“By around April, we’ll start to see our new building take shape.”
Commissioning is planned for early 2027, with the first product expected to come off the line in April 2027.
Murphy said the move was a big strategic step forward for Fonterra and an important milestone for the co-op’s Foodservice and Ingredients business.
He said it was part of Fonterra’s commitment to invest up to $1 billion over the next three to four years in projects that help generate more value and drive operational efficiencies across the co‑op.
“At Clandeboye, this expansion will lift our returns.
“It’ll start to move some of our dairy fats into a much higher-value product mix.”
Murphy said the new butter line would also increase Fonterra’s capacity, allowing for the production of a wider range of butter formats, including Halal and Kosher options.
“These are really important things for a lot of our international customers and really open up a lot of the overseas markets and professional kitchens around the world.”
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It was also good news back home.
“This is just a great thing for South Canterbury’s local community, lots of contractors getting involved,” Murphy said.
“And when we’re up and running, we’ll create 16 new jobs out here at Clandeboye.”
Murphy is new to South Canterbury, having recently moved from Waikato.
He said weather conditions were improving across the region, resulting in strong momentum in milk collections.
“It’s been a record milk season for us; we’ve seen 5% growth in our milk this year over last season.
“So it’s really been a big year for us down here at Clandeboye.”
He said farmers had also made improvements in their on-farm management to support pasture growth and cow conditions.
