Fonterra is planning to build a 45,000t drystore and a 17,000t coolstore near Dunedin for milk freight.
According to the company, the 16.45 hectare site at Mosgiel will result in less truck movements on the roads, reducing the carbon footprint of transportation operations.
The site has its own rail spur, allowing it to be linked to the dairy factories at Edendale and Clandeboye.
The company is expecting more milk to be produced at irrigated farms in Canterbury and drought-proof farms in Southlands, as climate change and land-use conversion make their impacts felt.
The development is expected to consolidate Fonterra’s cool store operations in Dunedin, increase the use of rail over road, and provide the additional storage to for outputs from the upcoming Edendale powder plant.