Fonterra Co-operative Group Limited has confirmed the permanent closure of its Kaikoura site, following the conclusion of staff consultation.
“While it is difficult for the people involved, we have a responsibility to our farmer shareholders and unit holders, and our customers to be as efficient as possible across our business, especially given the low milk price,” says Mark Leslie, director New Zealand Manufacturing.
Kaikoura’s cheese volumes will be split among Fonterra’s Lichfield, Clandeboye, Stirling and Whareroa cheese plants, where cheese production is up to 16% more cost effective than at Kaikoura.
“Based on consultation, around half of the site staff have indicated their interest in redeployment elsewhere in the Co-operative, and we are confident we will be able to meet their wishes.’
The final day for processing at the site is expected in mid to late April.
