Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, New Zealand, to focus more on paediatric nutritionals.
This would mean Canpac would move to operating 24 hours a day, Monday-to-Friday, instead of the current seven days a week operation.
The proposed changes could mean around 110 roles may not be required at the site that currently employs 330 people.
Fonterra Director of NZ Operations, Robert Spurway said Fonterra is proposing to resize the operation to better align with the company’s paediatric nutrition strategy.
“We’ve undertaken a thorough review of the site and looked at where to focus the business after some of Canpac’s volume was reduced, and have been considering options to make the site run more efficiently and a better fit with our strategy,” he said.
“This is not a decision we have taken lightly and we are working through a consultation process with our people around the proposal.”
“This will be a blow for our people and we will do everything we can to work with them to find new opportunities at our other sites in the Waikato and further afield should they need them.”
“As we move into the start of our busy milk processing season we will have more job opportunities at our other sites and we will aim to fill with those impacted at Canpac.”
Spurway said the Waikato is a vital region for Fonterra, and the co-operative employs about 2,000 people there and has invested more than US$150 million in the area in the past three years.
“We have invested heavily in our foodservice business, spending US$120 million on a new ultra high temperature plant at our Waitoa site and US$30 million on a cream cheese plant at Te Rapa, which combined have created 90 permanent jobs, on top of the hundreds involved in the construction,” he said.
“We have also recently lodged consents to build a new milk powder drier at Lichfield and if this expansion goes ahead it would mean another 50 processing jobs.”