Dairy farmers might be in the grip of tough financial times but the mood at Fonterra's Edendale dairy factory yesterday was upbeat as about 200 people gathered to formally mark the completion of the factory's $157 million expansion.
The word of the day was "agility'', with Fonterra managing director of global operations Robert Spurway and Fonterra director Leonie Guiney saying the additions enabled Edendale to produce a wider range of products and respond faster to customer demand, ensuring better returns for farmer shareholders.
A 2900sq m building housing three processing plants was completed in October.
A milk protein concentrate (MPC) plant separates protein from skim milk and turns it into protein powder, a reverse osmosis plant has increased the capacity of an existing milk drier by about 300,000 litres a day, and an anhydrous milk fat plant processes 550,000 litres of cream daily.
MPC is a high-protein dairy ingredient typically used to make products such as yoghurt, while anhydrous milk fat is exported worldwide for use in a wide range of food products, including chocolate.
Associated works included a bank of milk silos, a water chiller, another milk reception area, and upgrades to the site's wastewater treatment and electricity supply.
A corner of the distribution centre shed was the venue for speeches from Mr Spurway, Deputy Prime Minister Bill English, Southland Mayor Gary Tong, and Mrs Guiney.
Mr English unveiled a commemorative plaque before shareholder farmers, contractors and other guests were taken on site tours and treated to a barbecue in the nearby Edendale recreation grounds.
The expansion was completed on time and on budget in 366 days - or as Mr Spurway called it - "one leap year''.
Edendale, already the largest dairy factory in the world by volume, was now able to process 16.2 million litres of milk daily at peak season, he said.
Mrs Guiney, who with her husband Kieran owns dairy farms in Canterbury, said her visit to Edendale followed a ribbon-cutting on Thursday at Fonterra's Clandeboye site, near Timaru, to celebrate a successful first season for its mozzarella cheese plant.
The additions at both sites would provide immediate and future returns for shareholder farmers, she said.
But she said she was not comfortable only talking about celebrations when some dairy farmers were managing their businesses in "crisis mode'' and others were managing with difficulty.
"Every dairy farmer in New Zealand is right now, I believe, making some adjustment to ensure their family's future, as is your co-operative. But [the expansion is] not an adjustment. This is an investment - Fonterra's strategy in play.
"In the past Fonterra has been forced to make lower-returning products at peak simply because we lacked the ability to flex our product mix to those most in demand. [Now] we have that flexibility, and that makes it easier for us to keep our promise that your milk will always go into products generating the best return.
"Every dollar we have invested in capacity makes plants like these some of the most efficient and agile in the world.
"We are better placed now to adjust to market trends and changes in customer demands, and do it in ways which deliver the best quality and the lightest environmental impact.''
