Fonterra expands Studholme site as hub for high-value proteins production

The Studholme expansion will enable Fonterra to manufacture more advanced ingredients in-house.

Content brought to you by Fonterra

Construction at Fonterra’s Studholme site is in full swing, as the co-op transforms it into a hub for high-value proteins to keep up with global demand.

Last year the co-op announced a $75 million investment in the site, near Waimate.

Derek Woodworth, Fonterra’s General Manager Operations – Central and Upper South Island said the project was progressing well and had remained on budget.

“The foundations and the walls of the new processing building are now complete, marking a major project milestone,” he told The Country Sport Breakfast’s Brian Kelly.

Woodworth said important processing equipment would arrive this month, followed by work in April to make the building watertight.

”We’ve also started installing external processing equipment, which will continue through into March.”

The expansion will improve Fonterra’s capability, enabling it to manufacture more advanced ingredients in-house.

“Those proteins have enhanced functionality and are used in premium applications, like medical and high-protein sports nutrition.”

Woodworth said Studholme was the ideal site for the new plant, as it was the right size, relatively new and built with future growth in mind.

It also made sense from an economic standpoint, he said.

“The investment strengthens the site’s long-term role within our network, ensuring the site remains a key part in the high-value dairy ingredient production.”

Woodworth said Fonterra supported the local economy while growing its high-value ingredient capabilities.

“This project will create six new roles on the site, and many of the contractors involved in the build are from the Canterbury region.”

He explained that the expansion was a key part of the co-op’s strategic shift toward driving value in its Ingredients and Foodservice businesses, as demand for these products grew.

Listen below:

“By strengthening our capabilities, we’re setting ourselves up for long-term success.

“We see significant opportunities in the high-protein dairy market, which is expected to grow by nearly US$10 billion over the next four years.”

By increasing its manufacturing capacity for functional protein, Fonterra can grow its offerings with existing customers while attracting new business

This investment also enables the co-op to deepen partnerships with strategic ingredients customers; offering them high-performance dairy solutions tailored to their needs.

“It’s all about ensuring our co-op stays competitive in a growing, high-value market,” Woodworth said.

The next few months will be crucial in Studholme’s expansion, as construction is set to wrap up by the end of 2025, with the first product scheduled to come off the line in 2026.

Woodworth said there was a “real buzz” about the build.

“It’s great to see the progress on-site.

“The team at Studholme are doing an amazing job ... we are all looking forward to seeing it be completed over the next year.”