Fonterra's biggest South Island factory complex, at Clandeboye near Temuka, has commissioned a new $26 million butter plant.
Production at the new plant began a week ago and is gradually being stepped up to 250 tonnes of butter a day by the end of this month.
The new butter plant is similar
to ones already in use at Te Awamutu, Takaka, Hawera and Morrinsville.
When it is fully operational the total capacity at Clandeboye will be approximately 1.7 billion litres of milk a year - to be processed into cheese, skim milk powder, anhydrous milkfat and butter. Its catchment area is from North Canterbury to North Otago.
Meanwhile, New Zealand Milk Products, a division of Fonterra, is preparing to expand its Edendale factory in Southland just three weeks after opening a $149 million milk powder plant.
Factory manager Bruce Donnison said the new plant would increase powder production from 40,000 tonnes to 100,000 tonnes a year but the company was already looking to the future.
"That project completed, we now have the question of a lactose [plant] upgrade up for consideration," he said.
"There are increasing demands on the factory and we have to discuss whether such an expansion would be desirable."
NZMP has already applied to Environment Southland for consent to increase its water take from nearby wells in anticipation of the move, which is yet to be approved by the company's board.
The plant produces 110,000 tonnes of product annually, which includes cheese, milk powder, caseins, anhydrous milk fat, lactose and whey cheese.
- NZPA
