Speaking in Moama on Wednesday, Mr Dedoncker said despite the excess capacity, the factory was "cash positive" in its third year since its expansion.
“This year, this season we're running about 40,000 tonnes of cheese through steel,” he said.
“There's about another 25,000 tonnes of other production ... so it's about 65,000 tonnes in total.
“And the view was you could never be cash positive in a factory like that, that's actually going to do 80. Well, I can tell everyone they're wrong.”
Mr Dedoncker said the company had "cracked the code" and brought together the right shift patterns and the right amount of milk to deliver a positive financial result.
And as a result is being more selective with what is produced at the factory.
Yet, he conceded the company still needed to move milk to the factory to keep production on track, a practice he'd like to see end.
“Sometimes we do need to move milk through our network, and move it from other regions to the north, which is not cheap.
“But to be able to do all of that, and have a facility that is cash positive — it's quite remarkable.
“The good thing is we do have head room, but I don't want milk for milk's sake. I don't want just any cheese opportunity going through Stanhope either.”
Mr Dedoncker said he hoped an early price announcement would deliver certainty to suppliers, which will ultimately see supply to the factory lift, meaning less milk brought in from across the state.
“The big focus is more milk, locally, if we can; if I can stop moving as much milk but be even more profitable, and that's even more shared.
“But like I said, if we need to move we can work out how to do that. The idea is that every year we move just a little bit less.”
In 2018 it was announced the Stanhope factory would double in size as part of a $165 million expansion.
The investment in a new cheese plant and aligned facilities saw cheese production increase by a further 35,000 tonnes at the site for a range of cheeses including cheddar and mozzarella.
