Fonterra confirms Waikato plant closures, hopes to redeploy staff
Dairy giant Fonterra has confirmed plans to close a number of plants at two of its Waikato sites, a move the company said would see 41 jobs “impacted”.
Fonterra’s director of NZ manufacturing, Alan Van Der Nagel, told the Waikato Times that like all good businesses, they are “always looking to optimise our operations”.
“Waitoa PDC (specialty powders) and the site’s coal centre, along with dryer one and two at Te Rapa, have served us well,” he said.
“But they are ageing assets and are no longer efficient to operate. For these reasons, we have let our teams know of plans to close these plants. Our Waitoa and Te Rapa manufacturing sites will continue to operate.
Van Der Nagel said their “impacted operations” at Waitoa would discontinue near the end of the year, “and 41 roles are impacted”.
“We are working with the team on redeployment opportunities within the Co-op. We will continue to operate our specialty nutrition dryer and UHT plants at Waitoa,” he said.
“At Te Rapa the two impacted dryers will discontinue operations in May and we have sufficient vacancies on site to redeploy the small number of impacted roles.
“These changes allow the Co-op to ensure resource is geared towards high value products.
“For example, we are increasing production capacity at Hautapu to meet growing demand for lactoferrin and at Pahiatua where we are gearing up to produce more caramelised milk powder for growing future demand.”
Van Der Nagel said that their priority right now “is supporting our teams through this change”.
Dairy Workers Union National Secretary Chris Flatt told the Waikato Times that while they were aware of “some impact on roles we’re confident there’s no reduction in head count”.
He said they were in talks with the cooperative and that there were “a couple of proposals at this stage, potential changes” being discussed.
He also said the union was working to “minimise the impacts” of the closures.
Flatt conceded, however, that there “might be a rearrangement in roles”.
He also said the diary sector - particularly in Waikato - was facing change in the face of new entrants to the market who are “really targeting the Waikato”.
The Waikato Times had previously revealed these include OFI (Olam Food Ingredients), a Singapore-based, multi-national agricultural organisation that recently set up shop in Tokoroa.
The overseas giant has also been snapping up Fonterra dairy farmers to supply them with milk.