Last week’s commissioning of the 30 metric tonne per-hour dryer at Lichfield means the site will be capable of processing an additional 4.4 million litres of milk each day, equivalent to almost two Olympic swimming pools, into milk powder for export.
The $360 million includes the new dryer, the distribution centre, an environmental plant and supporting services.
The high-efficiency milk powder plant is the world’s joint-largest dryer; the other being at Fonterra’s Darfield site in the South Island, and is supported by a new distribution centre and sophisticated wastewater treatment plant.
Fonterra’s Chief operating officer, Robert Spurway, said large-scale dryers played a key role in driving value for Fonterra.
"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," Mr Spurway said in a statement.
The goal was to strike a balance in assets which allowed Fonterra to switch between products quickly to meet changing global demand, push milk production pace when required, and ultimately deliver the best product mix to generate returns, Mr Spurway said.
South Waikato operations manager Sam Mikaere said the distribution centre had the capacity to store 40,000 tonnes of whole milk powder, which is then loaded into containers and shipped directly to port via an inbuilt rail siding.
"This provides a very cost-effective infrastructure and helps reduce the number of trucks on road," Mr Mikaere said.
There are 330 Lichfield staff, of which about 70 were additional people who assisted with the expansion, plus 20 staff from Fonterra’s milk collection team who were relocated to Lichfield.
The new biological wastewater treatment plant was capable of turning dairy waste into fertiliser, which was irrigated on to neighbouring farmland to feed pastures, part of Fonterra’s commitment to environmental sustainability, he said.