Home > Fonterra expands sliced cheese production to meet international demand

Fonterra expands sliced cheese production to meet international demand

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New Zealand dairy giant Fonterra has announced plans to expand its pre-sliced cheese capacity with a NZ $32m investment at its Eltham plant in Taranaki, New Zealand.

The decision was based on a growing increase in demand for pre-sliced cheese throughout Australia, Asia and the Middle East. Work on the expansion set to commence in early 2014,The WSJ reports.

Rene Dedoncker, director of foodservice at Fonterra said that the investment is part of a push to grow its business within the lucrative foodservice sector.

"Our results last year showed a 45% normalized EBIT growth in foodservice for our Asia, Africa and Middle East business," he said. "We also achieved double digit growth in China where foodservice grew 28%."

The company also mentioned that international growth in cheese consumption is being largely driven by trends in eating out of home, particularly within Asian markets where western diets are being embraced.

According to Fonterra, its foodservice business has grown by 9 percent in volume over the past three years with profitability increasing by 11 percent over the same period.

The expansion is expected to be completed by around mid 2015.

Image: haileyswellnessblog.blogspot.com

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