The first liters of Waikato-farmed milk of New Zealand are flowing through Fonterra’s newest high-efficiency milk powder plant, as the world’s joint-largest dryer comes online in the South Waikato.
The new 30 mt an hour dryer at the Co-operative’s Lichfield site will be capable of processing an additional 4.4 million liters of milk each day – equivalent to almost two Olympic swimming pools – into high quality milk powder for global markets.
Large scale dryers such as this play a key role in driving value for the business, says chief operating officer Robert Spurway.
“Premium milk powder is a valuable product for Fonterra in its own right, but people often underestimate the strategic importance of powder production to the Co-operative’s overall asset mix,” he says.
“The capacity these assets give us takes the pressure off during the peak of the season, meaning we have more freedom to priorities milk into higher returning products.”
“Our goal is to strike a balance in our assets that enables us to switch between products quickly to meet demand changes in global markets, push the pace on production when milk volumes dictate, and ultimately deliver the best product mix to generate returns.”
South Waikato operations manager Sam Mikaere says opening the new dryer is the culmination of more than two years of focus and effort from teams around the world.
“We sought expertise locally, nationally and globally from more than 200 companies and their dedication has seen the project come in on time and well under budget,” says Mikaere.
The dryer is supported by a new distribution center and a sophisticated wastewater treatment plant.
The distribution center can store 40,000 mt of whole milk powder which is then loaded into containers and shipped directly to port via an in-built rail siding.
This provides a very cost effective infrastructure and helps reduce the number of trucks on road.
A new biological wastewater treatment plant is capable of turning dairy waste into fertilizer which is then irrigated onto neighboring farmland to help pastures flourish.
The new dryer is expected to be running at full capacity in the next week, providing dairy nutrition to more than 20 markets around the world.
