Fonterra, a New Zealand-based multinational dairy co-operative, has commenced operations at its new milk powder plant located in South Waikato.

The new 30t/h dryer at the Lichfield site can process an additional 4.4 million litres of milk each day.

Fonterra chief operating officer Robert Spurway said: “Premium milk powder is a valuable product for Fonterra in its own right, but people often underestimate the strategic importance of powder production to the Co-operative’s overall asset mix.

"The successful commissioning of this project is the result of an exceptional breadth of experience and knowledge."

“The capacity these assets give us takes the pressure off during the peak of the season, meaning we have more freedom to prioritise milk into higher returning products.

“Our goal is to strike a balance in our assets that enables us to switch between products quickly to meet demand changes in global markets, push the pace on production when milk volumes dictate, and ultimately deliver the best product mix to generate returns.”

The dryer is supported by a new distribution centre and a wastewater treatment plant.

The distribution centre can store 40,000 metric tonnes of whole milk powder and the new biological wastewater treatment plant is capable of turning dairy waste into fertiliser, which can be irrigated onto neighbouring farmland.

Fonterra South Waikato operations manager Sam Mikaere said: “The successful commissioning of this project is the result of an exceptional breadth of experience and knowledge.

“We sought expertise locally, nationally and globally from more than 200 companies and their dedication has seen the project come in on time and well under budget.

“The last few weeks as we geared up to first milk has been an exciting time not only for Fonterra, but for everyone in Lichfield and our surrounding communities who have lived this development along with us.

“It’s rewarding to see it all come off without a hitch as the plant heads into its first season.”

The new dryer is expected to be running at full capacity in the next week, catering to more than 20 markets around the world.

Image: Fonterra opens new milk powder plant at Litchfield. Photo: courtesy of Fonterra Co-operative Group.