Oct 22 (Reuters) - New Zealand's Fonterra on Wednesday said it was investing NZ$75 million ($43 million) in its Clandeboye site in South Canterbury to expand production, as part of the dairy firm's strategy to grow output of a high-value product. Additionally, the co-operative said it plans to invest up to NZ$1 billion over the next three to four years in projects that will generate further value for farmers and drive operational cost efficiencies. The investment will expand Clandeboye's current butter production capacity by up to 50,000 metric tonne per annum and the site's ability to produce a range of butter formats. "This investment is part of Fonterra's broader strategic asset roadmap supporting long-term growth in high-value dairy categories. The expansion will create 16 new jobs at the site, supporting the local economy," said Chief Operating Officer Anna Palairet. First announced in September last year, the strategy was aimed at deepening the focus on the co-op's ingredients and foodservice businesses to grow value for farmer shareholders and unit holders. The company had announced a new dividend policy of 60-80% of earnings with an increased target of average return on capital of 10%-12% as well as its goal of capital investment of around NZ$1 billion per annum in essential, sustainability and growth capital. ($1 = 1.7443 New Zealand dollars) (Reporting by Sneha Kumar in Bengaluru; Editing by Maju Samuel) ((Sneha.Kumar@thomsonreuters.com)) Keywords: FONTERRA INVESTMENT/
