Fonterra said that production of the new dryer installed at its Pahiatua site, on New Zealand's North Island, is expected to commence next month.

The dryer will will produce 140,000 tonnes of wholemilk powder a year, Fonterra revealed. Production at Pahiatua will increase by 2.4m litres a day to a high of 3.8m litres at the peak of the dairy season, the company revealed.

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"The first milk [is] due through the new plant towards the end of August," Fonterra said. The group's investment in the facility stands at around NZ$235m.

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