Fonterra Tirau receives big investment to swap from ethanol to lactose production

The new lactose plant at Fonterra's Tirau site. Photo / Supplied

Fonterra has invested $40 million into its Tīrau factory to help turn milk into more profitable products like lactose.

The co-op's Tīrau site has previously produced ethanol from whey for bio-fuels but will now be able to switch to making whey permeate for lactose which is more profitable than ethanol.

During the dairy season peak in the Waikato, the co-op's Tīrau site processes up to 2 million litres of milk every day.

Fonterra's central North Island general manager Tony Maclean says the investment was "a massive effort" made possible through a cross-functional team from across Fonterra, as well as external partners.

"This is a positive step forward in our long-term strategy. The significant investment in the Tīrau site demonstrates the importance of the site in the North Island."

Lactose is a natural milk sugar that is often used in food products like infant formula or pharmaceutical products like tablets.

While Fonterra has seen a recent reduction in milk collections due to weather events like floodings, it still is the dairy season peak.

Across the country, tens of thousands of Kiwis have been working hard milking cows and transporting milk to manufacture dairy products which then get shipped across the world.

This also means it’s all hands on deck for Fonterra which has a team of 7000 people working across 30 manufacturing sites that often operate 24/7.