Multi-national dairy company, Fonterra, will invest more than $100m in a new UHT milk processing plant at its Waitoa site in New Zealand's Waikato region.
Fonterra chief executive, Theo Spierings, said the new plant will allow the company to meet Asia's growing demand for UHT products.
"The new plant will enable us to increase our UHT production by 100 percent over the next few years. The plant will include five new UHT lines that will produce a range of products including UHT white milk and UHT cream for the foodservice sector," he said.
The new plant will see the creation of 50 new jobs and will provide new opportunities for Fonterra farmers in the North Island.
"Milk supply in New Zealand is seasonal because it follows the grass growth curve. However UHT production requires year-round milk supply so we will be talking to our farmers about the opportunity for more of them to take up winter milk contracts. This will enable them to take advantage of the milk price premium that these contracts include," Spierings said.
"A recent survey of our farmers indicated that a good proportion of them in the Upper North Island would be keen to take up winter milk contracts."