Monday, October 22, 2018
 Fonterra to Build Processing Facility in New Zealand  

Fonterra has announced plans to build a second milk processing facility at its site in Darfield, New Zealand, which will house the largest milk-powder dryer in the world next year, will source milk from farms in the area.

The company is estimates spending $500 million developing the Canterbury site for processing whole milk powder, with stage one of a 15.5-tonnes-an-hour dryer and facilities to be ready by mid-August and stage two containing the world's largest 30t/hr dryer a year later.

This will place the complex in a position to begin processing before the peak of milk arriving from farms in October this year and next.

Stage one will cost about $200m and stage two of the spray drying tower, extra warehouse space and a railway connection, $300m.

The core structure of the first stage is mostly up, apart from the roof of the 15.5t/hr dryer, the boiler building to enclose the boiler and its 60-metre stack with the internal fit out remaining.

Fonterra's New Zealand operations director Brent Taylor said good milk growth in central South Island warranted the investment. However, all milk for the two stages would be fed from supplies being taken now.

"We are still growing in the South Island by 1.5 million to two million liters a year, but the milk feeding D1 and D2 is already on existing farms."

Milk going to the Darfield site will be from farms within a 60-kilometre circumference around the processing plant. The milk has been going to the Clandeboye factory near Timaru and milk tanker traffic will be redirected to Darfield, reducing transportation costs.

Mr. Taylor said the site would have a lean supply chain, with locally sourced milk transported by tankers to Darfield and the processed milk powder handled through a railway siding on the site and transported by rail mainly to Lyttelton port.

Large ships would continue the efficient supply to big markets, mainly in Asia. "[Milk production] is what New Zealand is good at. We are 25 per cent of New Zealand produce in exports. We are putting in plant that is clearly efficient and making nutritious dairy products for the Asian market."

The two-stage investment is understood to be the largest in New Zealand's dairying history.

Fonterra's ED4 dryer, in Edendale, Southland, which averages 28t/hr, cost $215m, and its big warehousing complex in Hamilton cost $80m.

Darfield's D1 dryer will process 2.2 million liters a day at peak milk flows, and D2 4.4 million liters, with Fonterra expecting to tweak this to seven million liters.

Source: Taranaki Daily News

Posted on Thursday, March 22, 2012 (Archive on Thursday, March 29, 2012)
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