January 24, 2018

Darnum to gain from $7 million capacity investment

Darnum is one of seven sites to benefit from expansion under Fonterra Australia’s recently announced $165 million capacity investment.

The site is earmarked for $7 million of projects which will increase its daily milk processing capacity from around 2.2 million litres to over 2.6 million litres. The facility produces nutritional powders used in infant formula and whole, skim and fat-filled milk powders for the domestic and export markets.

Andrew Nooy, Darnum Site Manager for Fonterra Australia, says the projects will contribute to greater plant efficiencies which in turn will improve yields.

“Every dollar you spend removing bottlenecks and improving your production systems delivers better yields from the milk going through the plant. The aim is not to waste a single drop and we are always looking for ways to improve efficiencies and yields.”

Mr Nooy says Fonterra Australia’s $165 million investment to grow capacity and increase efficiencies is another vote of confidence in the Australian dairy industry and sends a clear signal to global customers that demand can be met.

“As well as investing in more capacity, Fonterra Australia is encouraging more farmers to join us as suppliers.

“Our Australian milk pool has grown by 400 million litres this season, and with this new investment we plan to grow our milk further which we expect will come through growth from our existing farmers who wish to grow, coupled with milk from new suppliers joining Fonterra.

“We’re investing in the capacity for additional milk volumes across all of our seven sites so we can meet continued demand in the local and global markets,” concluded Mr Nooy.

In addition to the capital expansion, the company has employed an additional 15 drivers after investing more than $8 million in 14 truck and trailer units across its milk collection regions in Victoria and Tasmania.

About Fonterra’s Darnum plant

  • The Darnum plant is a joint venture between Fonterra and Beingmate, with Beingmate owning a 51 per cent stake in Darnum, and Fonterra a 49 per cent stake and control of production at the plant.
  • The Darnum site produces a range of nutritional powders and whole, skim and fat-filled milk powders for the domestic and international export markets.
  • Site supports over 120 jobs directly and 573 indirectly in the wider economy.