January 24, 2018

More investments boosting Tasmanian capacity

Fonterra Australia’s Tasmanian sites are set to gain from almost $12 million in capital projects to boost milk processing, cheese making and lactose capacity.

Wynyard as well as Spreyton in Tasmania join Fonterra’s manufacturing plants in Stanhope, Darnum, Cobden, Dennington and Bayswater in Victoria as the beneficiaries of a $165 million investment program as Fonterra Australia grows capacity to meet increasing demand.

Fonterra Australia Regional Operations Manager – South, Steve Taylor, says Tasmania is an important milk pool for Fonterra Australia and local farmers are enjoying excellent production conditions.

“Tasmania is known for the quality of the milk coming off local farms and we are growing our supply.

“The latest investment of almost $12 million will cover upgrades and projects to boost capacity and improve efficiencies at both plants. It’s another vote of confidence in Tasmania and in dairy. Demand is growing and it is also important we show our domestic and export markets that we’re ready to meet their needs.”

Tasmania’s farmers have made the most of good conditions and the 300 farms supplying Fonterra are no exception.

With dairy an important contributor to the local Tasmanian economy, Mr Taylor says Fonterra Australia is committed to growing the Tasmanian dairy sector.

“Demand for high-quality dairy is growing, particularly across the developing world, and there are opportunities for dairy producing nations. This presents a great opportunity for Tasmanian dairy.

“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 across all of our seven sites so we can meet continued demand in the local and global markets.”

Fonterra Australia’s total milk intake is now 2 billion litres in Victoria and Tasmania, with the company employing 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.

Fonterra Australia’s Spreyton and Wynyard sites produce milk powders, butter and spreads and cheese for the domestic and international export markets. Wynyard has annual capacity of 45,000 – 50,000 tonnes, while Spreyton has annual capacity of 40,000 – 60,000 tonnes.