Fonterra invests $125 million to double Stanhope cheese plant


Fonterra Australia’s flagship Stanhope cheese plant will be a key beneficiary from investments of more than $165 million which the company has announced to boost capacity and increase efficiencies across each of its seven sites.

Stanhope is earmarked for $125 million of capital expenditure to double the size of the plant. The investment in the new cheese plant and aligned facilities will increase cheese production by a further 35,000 metric tonnes at the site for a range of cheeses including cheddar and mozzarella. Stanhope currently produces 45,000 metric tonnes of product including cheddar, mozzarella, gouda, parmesan, pecorino, romano and ricotta.

Stanhope Site Manager Jason Wright says the plant, which officially reopened in August 2017 following a $140 million rebuild and expansion, is seen as an important asset in Fonterra Australia’s push to make the most of domestic and global demand opportunities for products like cheese.

“It’s important for dairy in Australia that we’re showing confidence and investing in expansion. We believe in the long term demand prospects for dairy, and especially for cheese given the growth we’ve seen in foodservice.”

The cheese investment follows on from a $1.3 million investment to support product innovation, as Stanhope rolls out its Perfect Italiano Ricotta Stir Through for pasta and a further $6 million to secure efficiency gains.

“Ricotta is a staple product for us and our investments have enabled us to launch a first-of-its-kind innovation. We’re confident the dollars spent in the plant will bring solid returns to farmers with these value-add, fit-for-purpose offers.”

Mr Wright says with the cheese expansion the site is keener than ever to secure additional supply.

“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’ve employed an additional 15 drivers after investing more than $8 million in 14 truck and trailer units across our milk collection regions in Victoria and Tasmania,” concludes Mr Wright.

About Fonterra’s Stanhope site

  • The plant recently underwent a significant $140 million rebuild and expansion following a fire which destroyed the primary cheese plant in 2014.
  • The cheese site produces mozzarella, cheddar, parmesan, pecorino, romano, ricotta and gouda, as well as ingredient cheddar for domestic and export markets.
  • Stanhope also processes dairy ingredients.
  • Employs around 150 people. A further 36 new jobs will be created with the new cheese plant announced today, in addition to generating significant construction work during the development phase.