Fonterra plans to construct storage facilities for 62,000 tonnes of product on the former Fisher and Paykel site in Mosgiel, but it is too early to know the impact of facilities on the landscape.
A 45,000-tonne dry store and 17,000-tonne coolstore were in planning stages as the company looked at developing the site to meet its business needs, New Zealand warehouse transformation manager Greg Pope said.
"While some changes to the landscape will be required to enable site access and development, we know that a lot of work has gone into planting and enhancing the site."
The company wanted to recognise community interests and "preserve as much of this landscape work as possible".
Mosgiel Taieri Community Board chairman Barry Barbour said the board had been informed about the removal of trees "ages ago".
It had been asked to relocate two memorial trees to Dunedin City Council land but understood it would be a "long time down the track".
Mr Pope expected the development would create more than 30 jobs in addition to the work the construction phase would create for local businesses.
It was expected the building would be converted into a dry storage warehouse by October, with the second phase of the project, the building of a new cool store and extending the dry storage facility, expected to be completed in time for the 2010-11 dairy season.
Rail would be used, which would mean fewer truck movements on roads between the site, Port Otago and Southland.
Simplification of the supply chain network in the South Island was also important to Fonterra, as cool store operations, which were spread across sites in the region, would be consolidated in Dunedin.
