Fonterra to close cheese plant

Fonterra's Longburn plant in Palmerston North will stop making cheese next month, and 35 jobs will go.

Manufacturing Value Add manager Steve Morrison said Fonterra had been working through the plant closure with staff over several months.

About 15 affected people would get jobs at other parts of the Longburn operation, in altered roles.

The other 20 staff are looking at positions Fonterra may have at other sites, and other placements locally.

Mr Morrison said he didn't want to give numbers, but "there aren't a lot of Fonterra opportunities locally, and in the end it comes down to individual preferences".

Some staff might have to move to other places to get jobs.

"It is not viable to continue manufacturing cheese [at Longburn], taking into account the market dynamics, the volumes and the costs involved," he said.

The Longburn site employs 114 staff, mostly permanent fulltimers, with many working in milk collection.

There is also some peak milk processing through the spring and early summer months.

The closure of the cheese plant would leave some other operations still going, including a large Goodman Fielder operation, Mr Morrison said.

"Fonterra will still have significant stores, milk transport, and some peak milk processing still running."

The milk train would continue to run through Longburn and the tanker base would remain there.

Mr Morrison said the cheese plant's closure would not result in any change to the plant's look, with no buildings to be demolished.

The Dairy Workers' Union spokespeople were overseas and could not be contacted.

- © Fairfax NZ News