Tuesday, February 20, 2018

Fonterra invests $125M to double Stanhope cheese plant

David Lee January 31, 2018

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

Stanhope is earmarked for $125M 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 $140M 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,” Mr Wright said.

“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 $8M in 14 truck and trailer units across our milk collection regions in Victoria and Tasmania,” Mr Wright said.