Fonterra is closing its Brightwater Milk Powder Plant near Nelson in April next year.
Thirty employees will be impacted by the closure of the Brightwater plant. (File image) Photo: RNZ / Cole Eastham-Farrelly
The company said the small aging plant processes about 0.25 percent of the co-operative's overall milk supply into whole milk powder.
Fonterra chief operating officer Fraser Whineray said milk collection and associated activities would continue at Brightwater as Fonterra moves its milk transfer activities there from Tuamarina.
Whineray said the closure, which means the milk would instead be processed at the co-ops Darfield site, was in line with Fonterra's long-term strategy.
"We know milk supply is declining over time, flat at best, so we need to make sure we're getting the most out of every drop of milk and optimising our plants to match both consumer demand and available milk supply.
"Part of our long-term strategy is to direct more milk into our foodservice and consumer business, less into ingredients, and in some cases, to divert product away from the Global Dairy Trade auctions. This, along with forecast capital and maintenance costs, means we've made the tough decision to close our milk powder plant at Brightwater."
Thirty employees would be impacted by the closure of the plant and the priority right now was supporting them, Whineray said.
"It's no doubt tough news for some of the Brightwater team and we'll be working with them in the coming months on their future options, including re-deployment opportunities within the co-op."