Fonterra to close final link to globally-known cheese brand on Kāpiti Coast
Thursday, 26 September 2019
It made Kāpiti a brand known across the world, but now it has lost its final physical connection to its namesake.
The Kāpiti Coast will lose 65 jobs and a little bit of its identity as Fonterra announced plans to close its cheese factory in Paraparaumu.
The factory is likely to close next April, increasing specialty cheese production at a larger factory in Eltham, Taranaki. About 34 new positions would need to be filled at that plant.
Kāpiti Cheeses started at the Lindale complex, north of Paraparaumu, as a specialty cheese and ice cream operation in 1984. In 2003 it was bought out by Foodstuffs, before Fonterra bought it in 2005. The deal was thought to be for about $50-$60 million.
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In 2006, at the time the deal was approved by the Commerce Commission, Fonterra said it had no plans for major changes to the 'fantastic' Kāpiti brand of boutique cheeses and ice creams.
On Thursday Kāpiti mayor K Gurunathan was putting a brave face on the closure, saying the district could absorb the loss of 65 jobs.
'Yes, Fonterra's exit is a blow for us, but we have never been in a better position to absorb change.'
However it appeared the cheese industry, like the ice cream portion of the business, was leaving the district for good.
NZ Dairy Workers Union national secretary Chris Flatt said the union would help members that wanted to redeploy to other factories.The Kāpiti staff were highly-skilled workers in the industry, he said. The nearest potential factory was in Longburn: about 84km away near Palmerston North.
Staff that wished to stay in Kāpiti or leave the industry could consider redundancy, he said.
'Obviously the first reaction always is disappointment when any site has to close … all announcements like this are a surprise but it's not completely out of the blue in terms of what's come in with Fonterra.'
The announcement of the closure followed Fonterra's $605 million loss for the most recent financial year.
On Thursday, security staff were posted at the door of the Kāpiti plant's outlet store.
Paraparaumu man Dave Clark said he was surprised to see the guards, and the queue that had formed when he arrived.
It was likely the flood of customers worried that the shop might shut down quickly, he said.
Clark, who held a $5, 1 kilogram bag of aged cheddar offcuts said he'd heard rumours, 'inside information', on Monday that the factory might be closing.
'It'll be a shame for a lot of people, 70 staff, unless they transfer to Taranaki. Who wants to live in Taranaki?'
Electorate MP, and former Minister for Primary Industries, Nathan Guy said he felt for staff and their families impacted by the plant shifting to Taranaki.
Guy said there could be an opportunity for Kāpiti's expanding local beer brewing industry, which includes the Tuatara brand, to create more jobs locally in the remaining plant.
Kāpiti's Chamber of Commerce warned the closure would see skilled workers drained off to Taranaki, leaving Kāpiti's manufacturing sector at risk .
Chair Heather Hutchings said the closure would be felt across the community. 'With the empty Whitireia and Placemakers buildings just around the corner we don't need another vacant commercial space of this size.'