Sector News

Fonterra proposes Kaikoura cheese factory closure

March 1, 2016
Food & Drink

Fonterra is in consultation with its Kaikoura staff over the possible closure of the site in order to cut costs.

The plant operates between three to five months a year producing a small volume of specialty cheese.

In a statement today, the dairy company said moving this production to other sites would bring significant cost savings for the business and its 10,500 farmer shareholders.

Fonterra has met with Kaikoura staff today. A closure would affect 22 full-time workers.

“We will be discussing all options and opportunities available to our staff around their future employment, as well as providing the support they need to make decisions should the closure go ahead,” says director of New Zealand manufacturing Mark Leslie.

“The proposal to close the Kaikoura site has not been made lightly and is one intended to help generate cost savings for the benefit of all Fonterra farmer shareholders,” he says.

A decision is expected later this month.

Source: Newshub

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