Fonterra is making a $75m investment to expand butter production at its Clandeboye site in South Canterbury, New Zealand.
The investment will enable construction of a new butter line, expanding the site’s current butter production capacity by up to 50,000 MT per annum.
The new butter line will expand the Co-operative’s capacity to produce a range of butter formats, tailored for both global ingredients customers and professional kitchens.
The plant will be capable of producing products that meet diverse market requirements, including Halal and Kosher certifications, supporting growth in key international markets.
Fonterra chief operating officer Anna Palairet said: “This investment is part of Fonterra’s broader strategic asset roadmap supporting long-term growth in high-value dairy categories. The expansion will create 16 new jobs at the site, supporting the local economy.”
Construction at the Clandeboye site starts in December 2025, with commissioning scheduled for early 2027 and first product expected off the line in April 2027.

