Site works will begin next month, with the first product due to come off the line in 2026.
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Dairy giant Fonterra will pump $75 million to expand its Studholme site in South Canterbury, as it plans to grow its high-value ingredients business.
The site will become a “hub for high value proteins” designed for “premium” products such as medical and sports nutrition.
Site works will begin next month, with the first product due to come off the line in 2026.
“The expansion of our Studholme site will allow us to increase production of this high-value product and ultimately grow returns to farmers,” chief executive Miles Hurrell said.
Fonterra president for global markets ingredients Richard Allen said it saw global demand for its dairy ingredients.
“We see significant opportunities in the global high-protein dairy category, which is projected to grow by close to US$10 billion over the next four years, at an annualised growth rate of 7 percent per annum.
“Increasing our manufacturing capacity for functional proteins will enable us to continue to strengthen our offerings with existing customers as well as attract new business.”
Fonterra’s Studholme site, near Waimate, was taken over by the co-op in 2012 and employed 47 people, with the expansion set to add six new roles.
The site specialised in producing milk powders, and all final product is exported through the Port of Timaru.