Fonterra Chief Executive Andrew Ferrier said the world’s biggest milk powder dryer has officially opened today at the cooperative’s Edendale site near Invercargill. The company can turn milk products more efficiently than other dairy processors in the world.

The dryer known as ED4 can produce 27 tons of milk powder in an hour. It will help in increasing Fonterra's national output by more than 10% to 1.1 million tons a year.

"This plant will help us take advantage of the opportunities we're seeing in the international marketplace”, Mr. Ferrier said.

In foreign countries, demand for dairy products is increasing towards healthy, naturally nutritious and convenient foods.

Fonterra has posted a price rise of 20 cents a kilogram for milk solids, taking the total price to $4.26 per kilogram. Dairy processor, Fonterra also invested $70 million into dairy farmer’s pockets over the next year.

Fonterra's Managing Director, Bruce Donnison says that the international downturn raised the demand for dairy products due to which prices also increased.