Fonterra to double Waikato storage capacity through NZ$27m investment

Fonterra's Te Rapa processing facility in the Waikato.

Fonterra has announced plans to plough NZ$27m ($21m) into the development of a new dry store distribution centre at its Te Rapa processing facility in the Waikato region of New Zealand.

Te Rapa is one of Fonterra’s largest manufacturing sites, producing more than 300,000 tonnes of milk powder and cream products each year. However, current storage capabilities in the Waikato region currently cover just 60% of Te Rapa production.

Through this investment, storage capacity at Fonterra’s Te Rapa plant will more than double. According to the company, the investment will allow all production to be stored in the Waikato region before being transported straight to port for export.

Fonterra expects annual benefits of around NZ$5m ($3.9m) as a direct result of the investment.

“Our seasonal production means that we store products until we receive orders. The new dry store will enable us to store product at the site of manufacture right through the peak of the season and to more efficiently manage the flow of good through to our customers by better utilising the rail infrastructure out of our Crawford St distribution centre,” said Fonterra’s logistic network director, Mark Leslie.