Wellington, March 12 NZPA - Fonterra says it is discussing with key customers its plans to stop making cheese at Longburn near Palmerston North, which will axe the jobs of 35 workers.

The plant makes enough mozzarella-style strings to line 2300 stuffed crust pizzas every hour -- the pizzas are sold in fast food restaurants in New Zealand, Australia and South East Asia.

Manufacturing value-add manager Steve Morrison told NZPA the company was stopping manufacture of the cheese -- not formally defined as mozzarella -- at Longburn from April.

"It is not viable to continue manufacturing cheese, taking into account the market dynamics, the volumes and the costs involved," he said.

"We are talking with our customers about options."

When asked whether the string cheese could be made at other Fonterra plants, he said "unfortunately those options are confidential".

The site will continue producing mineral acid casein for general trade use.

He said that the site employed 114 people, but that of the 35 people affected, there would be other jobs available for only 15.

The company has been working with of the remaining 20 workers on jobs available at other Fonterra sites.

The site has also produced mineral acid casein for general trade use.

Mr Morrison said Fonterra would still have significant stores, milk transport, and some peak milk processing at the site, milk trains would continue to run through Longburn and the tanker base would remain there.

There was a substantial Goodman Fielder operation on the other side of the site, also making dairy foods.