Fonterra has confirmed it is restructuring its Edendale plant in eastern Southland, but the dairy company has not said how many of the site's jobs are affected.
The Otago Daily Times reported on Wednesday that workers at the plant had been blindsided by the news.
Fonterra said consultation with the people affected was under way, Newstalk ZB reported on Thursday.
The company also said the restructure was a separate matter from the new UHT cream plant being readied for commissioning at the same site.
More than 670 people worked at the site, according to evidence given to Southland District Council in February, B2B News reported.
The factory has operated in the township for more than 120 years and is now owned by Fonterra, the ODT said.
Fonterra announced the $150 million cream plant in September 2024. At the time it said the project would create 70 jobs, lifting staff numbers at Edendale from more than 670 to about 740.
The company said then that the plant would start with more than 50 million litres of UHT processing capacity and grow past 100 million litres by 2030, with first product expected in August 2026.
"This is fantastic news for Southland," Southland Business Chamber chief executive Sheree Carey said when that investment was announced.
The restructure news came six days after Fonterra reported its result for the 2026 financial year, B2B News said.
The co-operative reported a 31 per cent lift in underlying earnings, to 71 cents a share, and a return on capital of 14.2 per cent.
Citing Fonterra's annual report, B2B News said cash manufacturing costs had climbed to $2.78 per kilogram of milksolids, up from $2.66.
It is not the first time jobs have gone at Edendale. The site's cheese plant closed in 2023, affecting 34 jobs.
The co-operative this year finished selling its consumer brands to France's Lactalis in a $4.22 billion deal. They include Mainland, Kapiti and Fresh'n Fruity.
What happens next
Fonterra said consultation on the Edendale restructure was continuing. The company has not given a figure for the roles affected or a date for final decisions.
The new UHT cream plant is due to be commissioned at the site.
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