Fonterra to close cheese plant at Longburn

Fonterra plans to stop making cheese at its Longburn plant near Palmerston North, and says other jobs at the site will only be available for 15 of the 35 people being laid off.

Manufacturing Value Add manager Steve Morrison said the other 20 staff are looking at positions Fonterra may have at other sites.

Mr Morrison said some staff might have to move to other places to get jobs.

"It is not viable to continue manufacturing cheese [at Longburn], taking into account the market dynamics, the volumes and the costs involved," he said. The site has also produced mineral acid casein for general trade use.

Mr Morrison said Fonterra will still have significant stores, milk transport, and some peak milk processing at the site, milk trains would continue to run through Longburn and the tanker base would remain there.