Fonterra to expand research capability in Australia

31/10/05 Fonterra is to establish a NZ$16 million dairy innovation centre in Melbourne to focus on consumer dairy products, complementing its main research facilities in Palmerston North.

The centre, due to open in April 2007, will employ around 150 people. It will be Fonterra Innovation's second-largest research facility after Palmerston North, which employs more than 300 staff.

Fonterra's Director of Innovation, Bob Major, said that the facility, the first of its kind in Australia, will be an important contributor to Fonterra's new product development resources, which include centres in Mexico, Germany, Malaysia and Chile.

Fonterra CEO Andrew Ferrier said that the decision to base the consumer innovation centre in Melbourne was largely driven by the needs of Fonterra's consumer business, Fonterra Brands, which is a significant player in the Australian market and also exports to Asia.

Fonterra's current research network has an established reputation in cheese flavour technologies, protein-based solutions for chilled dairy applications, specialty milk powders for nutritional formulas and specialist ingredients for immune and gastrointestinal health, dermatology, sports health, bone health and animal health.

In making the announcement, Fonterra advised that it has already had fruitful discussions with the Gardiner Foundation regarding its new initiative - the Gardiner Consortium -, which aims to bring together dairy companies, other funders and research organisations to conduct research to benefit the Australasian dairy industry as a whole.

Fonterra is currently reviewing a number of suitable sites within Melbourne and construction is expected to commence in early 2006.

http://www.scoop.co.nz/stories/BU0510/S00535.htm