The investment of around $75 million is part of the Co-op's strategy to grow value through its world-leading Ingredients business
Fonterra is set to expand its Studholme site on the South Island, New Zealand to create a hub for high-value proteins.
Fonterra’s proteins have enhanced functionality and are designed to perform well in premium product applications such as medical and high-protein sports nutrition.
Miles Hurrell, Fonterra CEO says the investment of around $75 million is part of the Co-op's strategy to grow value through its world-leading Ingredients business by partnering with customers who value Fonterra’s unique offering.
“We have valuable expertise in dairy science and innovation, making us leaders in the manufacture of dairy proteins and other advanced ingredient solutions.
“The expansion of our Studholme site will allow us to increase production of this high-value product and ultimately grow returns to farmers,” says Hurrell.
Fonterra President of Global Markets Ingredients, Richard Allen, says the Co-op’s dairy ingredients are highly sought after by customers globally.
“We see significant opportunities in the global high protein dairy category, which is projected to grow by close to $10 billion over the next four years, at an annualised growth rate of 7 per cent per annum.
“Increasing our manufacturing capacity for functional proteins will enable us to continue to strengthen our offerings with existing customers as well as attract new business.”
Site works at Studholme will begin next month with the first product due to come off the line in 2026.
