Fonterra Plans NZ$75M Butter Production Expansion South Canterbury

Fonterra Co-operative Group is investing NZ$75 million to expand butter production at its Clandeboye plant in South Canterbury, increasing capacity by up to 50,000 metric tonnes annually. The new butter line will produce a range of formats, including lactic and unsalted butter, tailored for global ingredients customers and professional kitchens, with certifications such as Halal and Kosher to meet diverse market demands. This expansion is part of Fonterra's broader strategic asset roadmap, which includes up to NZ$1 billion in investments over the next three to four years to enhance high-value dairy categories and improve operational efficiencies. The project will create 16 new jobs locally and aligns with the company’s goal to return earnings to 2025 levels by 2028, particularly following the anticipated divestment of its Mainland Group business. Construction begins in December 2025, with commissioning expected in early 2027 and first products by April 2027. This investment supports Fonterra’s shift toward higher-margin products and sustainability, demonstrated also by recent moves such as converting coal boilers to wood pellets at the Clandeboye site.