A Fonterra spokeswoman said that later this year the dairy company planned to add a cool store to handle a further 17,000 tonnes of product.
Most of the dairy product would come from Fonterra's Edendale and Stirling dairy factories.
A fourth dryer was under construction at Edendale with the ability to produce 150,000 tonnes of milk powder a season.
It was on track to accept milk on September 1.
Finished dairy product would be trucked or railed to North Taieri where it would be stored and prepared for export through Port Otago.
Fonterra's group supply chain manager Joe Coote said the North Taieri storage project was designed to increase the efficiency of the company's supply chain.
It was modelled on the company's Hamilton dry store hub and would allow an increased use of transporting by rail, which he said would reduce heavy truck movements.
The Hamilton operation had reduced the number of truck movements by 45,000 a year, he said.
While securing construction industry work, Mr Coote said the development would result in about 30 new jobs on site and in related industries.
