Jobs go at dairy factory after fire

Dairy giant Fonterra has announced today there will be one-third fewer staff at their Takaka milk powder plant once the site, which was extensively damaged in a fire last month, is rebuilt.

Fonterra General Manager New Zealand Manufacturing Brent Taylor told staff that the company would be spending close to $30 million to refurbish the site's milk powder plant so it had sufficient capacity to process milk from the Golden Bay catchment.

But he said the company would not be rebuilding the butter hall or the casein plant.

The planned changes to the site's configuration as part of the refurbishment meant approximately 32 of its 96 staff would not be required at the Takaka site, he said.

"Fonterra's human resources team and other support staff were already talking to employees and union representatives and working through a range of options focusing on redeployment opportunities," the company said.

Mr Taylor said a number of factors had been taken into account in deciding the site's final configuration.

He said: "We appreciate what this decision means to the community, and we have taken various environmental, social and economic considerations into account.

"We are very conscious of the long-standing presence the dairy industry has had in Golden Bay, and of Fonterra's position as a major employer in the region."

Mr Taylor said the board and management received a number of letters from shareholders and others outlining the economic and social impacts that a complete withdrawal by Fonterra would have had on Takaka and the surrounding area.

"But, given the low volume of butter and casein we previously manufactured here, the cost of replicating the old manufacturing set-up simply could not be justified, and moving to milk powder production was the best option overall."

Mr Taylor said every assistance would be given to all staff affected by the changes.

- NZPA