Hot on the heels of announcing the sale of its Riverina Fresh milk plant at Wagga Wagga, Fonterra Australia is to spend $4.3 million boosting cheese and whey production at its Wynyard factory in Tasmania.
The investment will increase the plant’s cheese making capacity by 8000 tonnes a year – equivalent to 30 Olympic-size pools of milk to be processed annually.
Wynyard has been running at full capacity since a fire destroyed Fonterra’s Victorian cheese plant at Stanhope in December 2014.
The Tasmanian upgrade will complement the opening of the re-built Stanhope plant next year to lift Fonterra’s total Australian cheese production by 50 per cent.
Late last month Fonterra confirmed it was selling its 94-year-old Riverina Fresh business in southern NSW to newly-formed investment outfit, Blue River Group.
The deal is expected to be completed during October, although a sale price has not been disclosed.
The extra capacity aims to help the Wynyard plant keep pace with the growing export and domestic demand for Fonterra’s cheese and whey.
It will speed up every step of the cheese making process.
Southern regional operations manager, Steve Taylor said the plant was a key part of Fonterra’s global multi-hub strategy.
“Tasmania is an important region for Fonterra and our multi-hub strategy, and we continue to invest here for the long-term,” he said.
“We’re a major regional employer and we’re proud of the work we do and our involvement in the local communities.
“The more we invest for growth the more competitive our business will be, putting us in a strong position to manage global volatility, pay the best possible price to farmers and the best possible returns to our shareholders.