NZ-based Fonterra is investing NZ$150 million (US$93 million) into the construction of a new Ultra High Temperature (UHT) processing cream plant at its Edendale site in Southland to meet growing demand from its Foodservice Business in Asia.
The UHT cream, renowned for its performance and stability, was developed by Fonterra’s Research and Development Centre, as a form of innovation to diversify the use of milk. UHT cream has found new applications in local (Asian) cakes, puddings and beverages, where coconut milk is traditionally a staple. Its advantage over coconut milk is its ability to extend the shelf life of these products.
Fonterra has a thriving Foodservice Business in Asia where demand is growing by integrating dairy into traditional foods such as laksa and milk tea. In Malaysia, Fonterra is looking to build on solid foundations where half of New Zealand exports to the country are already dairy.
Fonterra CEO, Miles Hurrell said, “Demand for UHT cream continues to strengthen. Globally, we’re expecting demand to increase by more than 4% year on year between 2023 – 2032.”
The new plant will initially have a processing capacity of 50 million litres, with further expansion to 100 million litres by 2030.
