Fonterra Invests $32M to Expand Pre-Sliced Cheese Capacity

<p>In response to fast-growing demand from the foodservice industry, Fonterra is investing $32 million to expand its slice-on-slice cheese capacity at its plant in Eltham, New Zealand.</p>

AUCKLAND, New ZealandIn response to fast-growing demand from the foodservice industry, Fonterra is investing $32 million to expand its slice-on-slice cheese capacity at its plant in Eltham, New Zealand.

International growth in cheese is being driven by trends in eating out of home, particularly in emerging Asian economies where there is a continued shift toward more Western diets. Once the expansion is completed in mid-2015, the plant will be able to deliver both increased capacity and improved processes to meet growth in global demand from Fonterras foodservice customers.

Our foodservice business has grown 9% in volume over the past three years, and the profitability of foodservice has increased 11% in the same period," said Fonterra Director of Foodservice René Dedoncker. This investment in slice-on-slice cheese is in response to fast-growing demand throughout Australasia, Asia and the Middle East."

Dedoncker said Fonterras results last year showed a 45% normalized EBIT growth in foodservice for its Asia, Africa and Middle East business. The company also achieved double digit growth in China where foodservice grew 28%."

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