Dairy Sector – Fonterra invests $75 million to expand butter production at Clandeboye
Fonterra Co-operative Group Ltd has announced a NZD 75 million investment to expand butter production at its Clandeboye site in South Canterbury, as part of the next phase of strategic investments by the Co-op signalled in its FY25 Annual Results.
CEO Miles Hurrell says the Co-op plans to invest up to $1 billion over the next three to four years in projects that will generate further value for farmers and drive operational cost efficiencies.
“We’ve said that through focused execution of strategy we are targeting our earnings to be back at FY25 levels by FY28 if the Mainland Group business is divested.
“This investment supports that goal by increasing our production of a high-value product and improving our product mix by adding value to milkfat,” says Mr Hurrell.
The investment will enable construction of a new butter line at Clandeboye, expanding the site’s current butter production capacity by up to 50,000 MT per annum.
The new butter line at Clandeboye will expand the Co-op's capacity to produce a range of butter formats, tailored for both global ingredients customers and professional kitchens.
The plant will be capable of producing products that meet diverse market requirements, including Halal and Kosher certifications, supporting our growth in key international markets.
Mr Hurrell says global demand for butter continues to grow, and this investment positions Fonterra to better serve customers worldwide.
Fonterra Chief Operating Officer Anna Palairet says the expansion of the Clandeboye site strengthens Fonterra’s network in the South Island by improving flexibility and resilience.
“This investment is part of Fonterra’s broader strategic asset roadmap supporting long-term growth in high-value dairy categories. The expansion will create 16 new jobs at the site, supporting the local economy,” says Ms Palairet.
Construction at the Clandeboye site starts in December 2025, with commissioning scheduled for early 2027 and first product expected off the line in April 2027.
This is Fonterra’s third investment in the South Island in the past year, following:
$75 million investment in an advanced protein hub at Studholme to be sold through our Ingredients business, catering to the fast-growing high protein market for medical and sports nutrition. Construction is expected to be complete in early 2026.
$150 million investment in a new UHT cream plant at Edendale to unlock additional capacity for high value product sold through our Foodservice business. Construction is expected to be complete in the second half of 2026.
Fonterra has recently invested $64 million at Clandeboye for the conversion of two coal boilers to wood pellets, a crucial step in Fonterra's commitment to exit coal by 2037. The conversion was completed in August 2025.
About lactic and unsalted butters:
Traditional churned lactic butter is a European-style product made using a high-speed version of traditional hand-churning. Known for its rich, tangy flavour and dense, creamery texture, lactic butter is ideal for premium applications. Popular in Middle Eastern cuisine as well as western and local bakery products, Fonterra sells lactic butter direct to customers under its Ingredients brand, NZMP.
The unsalted butter produced at the Clandeboye site will be used for both Ingredients and Foodservice customers. Unsalted butter is a popular choice in products such as croissants, danishes, bread, cakes and cookies, and is increasingly used in traditional Chinese pastries. Fonterra sells unsalted butter direct to customers under its Ingredients brand, NZMP, and Foodservice brand, Anchor Food Professionals.
About Fonterra
Fonterra is a co-operative owned and supplied by thousands of farming families across Aotearoa New Zealand. Through the spirit of co-operation and a can-do attitude, Fonterra’s farmers and employees share the goodness of our milk through innovative consumer, foodservice and ingredients brands. Sustainability is at the heart of everything we do, and we’re committed to leaving things in a better way than we found them. We are passionate about supporting our communities by Doing Good Together.
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Tax Reform – Tax Omnibus Bill undermines the integrity of our tax system – Tax Justice Aotearoa submission
22 October 2025 – Tax Justice Aotearoa (TJA) is criticising the attacks on tax transparency and other retrograde measures contained in the Taxation (Annual Rates for 2025–26, Compliance Simplification, and Remedial Measures) Bill, currently before the Finance and Expenditure Select Committee. The proposals to repeal s.17GB of the Tax Administration Act, which enabled IRD to conduct its groundbreaking research into High Net Worth Individuals in 2023, and to repeal specific provisions mandating the provision of information by trusts, are just two of the problematic provisions TJA is highlighting in its submission to the select committee.
“TJA strongly opposes the proposed repeal of s 17GB of the Tax Administration Act,” says Glenn Barclay,Tax Justice Aotearoa spokesperson.”The IRD research in 2023 showed that the effective tax rate of the wealthiest New Zealanders (9%) was significantly lower than the rate for average working people (20%). Removing this provision looks like an attempt to shield the wealthy and powerful from the kind of scrutiny that the rest of us are subject to, because IRD already has good information on those whose income is derived primarily through work.”
“The Government claims the repeal of s 17GB is to address privacy concerns, but officials and the Privacy Commissioner have identified additional privacy safeguards that could mitigate those concerns,” says Glenn Barclay.
In a similar vein, the Bill repeals legislative provisions mandating provision of information by trusts, which was not previously collected under the discretionary system that existed before 2020. TJA also opposes this cutback on tax transparency.
“This kind of information is critical to understanding the impacts of the tax system to inform the development of policy to address inequities,” says Glenn Barclay. “Unlike the Register of Companies there is almost no information available on who controls or might benefit from a trust and given their widespread use as a vehicle for tax avoidance we need to be strengthening rather than removing disclosure provisions here.”
TJA is also concerned about the proposal to greatly expand and accelerate information sharing between IRD and other government agencies. This change is being proposed over the Privacy Commissioner's opposition and l has been rushed through without wide consultation.
“TJA opposes this move because, as the Privacy Commissioner points out, existing information sharing mechanisms provide appropriate protections for privacy. It would greatly widen the range of agencies which have access to individuals' tax information. This move undermines the principle that tax information is confidential in order to encourage people to honestly report their income and other information, which is essential to protect the integrity of our tax system,” says Glenn Barclay.
“It is also hypocritical, given the Government's professed concern for the privacy of high net worth individuals, and it risks reducing the trust people have in New Zealand's tax system and government” says Glenn Barclay. “Concerns have already been raised about potential information sharing between IRD and Immigration NZ giving rise to exploitation of migrant workers who are not lawfully able to work in New Zealand.”
TJA also considers the “digital nomads” provisions, which allow visitors to work for a limited time while in New Zealand without being taxed here, give rise to a risk of temporary-migrant exploitation and we have proposed greater safeguards.
The Bill also proposes to exempt income from taxation when it arises from individuals generating electricity (e.g. from solar panels) on their residential properties and selling some of it to an electricity retailer. TJA points out that this potentially gives another windfall to landlords.
“While we support the proposal for ordinary residents, for landlords with multiple properties this could result in a significant amount of additional, untaxed income. This would further tip the scales in favour of housing investment. It gives a further tax break to those who already have enough wealth to own multiple properties and don't pay tax on their income from capital gains,” says Glenn Barclay.
“The ultimate outcome would be to exacerbate the imbalance in our tax system, wealth inequality and housing unaffordability. It is simple to avoid this by putting a cap on the income from residential electricity generation and sale that is tax exempt.”
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Health – Labour’s fresh approach to funding general practice has merit – GenPro
The General Practice Owners Association (GenPro) has cautiously welcomed the Labour Party’s proposal to establish an independent, evidence-based approach to funding general practice in Aotearoa New Zealand.
“We support the intent to create a fairer, more transparent process for determining funding for general practice,” says Dr Angus Chambers, Chair of GenPro. “This is a positive step toward ensuring frontline services receive the support they need.”
The proposal, outlined by Labour health spokesperson Dr Ayesha Verrall in New Zealand Doctor, recommends removing Health New Zealand from the annual contract negotiation process and replacing it with an independent pricing system. The goal: to deliver consistent, data-driven funding decisions that reflect the realities of running a general practice.
“Decoupling funding decisions from Health New Zealand could help redirect resources to where they’re most needed—on the ground, in communities,” says Dr Chambers.
To be effective, GenPro believes the independent model must:
- Address not only rising business costs but all factors impacting the viability and sustainability of general practices;
- Enable general practice providers to contribute through high-quality submissions and consultation;
- Be guided by robust financial expertise and a deep understanding of the general practice business model.
“We expect an independent approach to improve on the current system and look forward to engaging further with the Labour Party to ensure this proposal delivers meaningful change,” Dr Chambers adds.
GenPro members are owners and providers of general practices and urgent care centres throughout Aotearoa New Zealand. For more information visit www.genpro.org.nz

