Fonterra cements position as the big cheese!
Fonterra has cemented its position as the country’s number one cheesemaker by picking up nine NZ Champion of Cheese trophies this year.
Fonterra is a step closer to buying a cornerstone stake in leading Chinese infant food manufacturer, Beingmate.
China’s Ministry of Commerce has now granted anti-trust and strategic foreign investment approval for the proposed partnership.
In a statement Fonterra says further regulatory approvals are required before it proceeds to the next stage which is a partial tender offer to gain up to 20% of Beingmate.
Fonterra says it will provide further updates as the partnership progresses.
Last year Fonterra announced it was teaming up Beingmate to tap into China’s growing demand for infant formula.
Fonterra and Beingmate intend to form a global partnership to supply infant formula.
The partnership will create a fully integrated global supply chain from the farmgate direct to China’s consumers, using Fonterra’s milk pools and manufacturing sites in New Zealand, Australia, and Europe; this will lead to increase glow of Fonterra’s ingredients and branded products exported to China.
The partial tender offer to gain up to a 20% stake in Beingmate is the first phase of the JV; after gaining regulatory approvals and Fonterra satisfactorily completing the partial tender offer, Fonterra and Beingmate will set up a joint venture to purchase Fonterra’s Darnum plant in Australia and will establish a distribution agreement to sell Fonterra’s Anmum brand in China.
Fonterra chief executive Theo Spierings last year said that the partnership between two leading dairy nutrition companies will be a game changer that will provide a direct line into the infant formula market in China, which is the biggest growth story in paediatric nutrition in the world.
The infant formula market in China is worth about $18 billion today and is expected to be worth $33 billion by 2017. This growth is driven by increasing urbanisation, higher disposable incomes, a preference for premium brands, and relaxation of the one child policy.
Farmer-led charity, Meat the Need is calling for donations to enable it to supply more meals to families in need.
Weaker pricing and demand from China continue to impact New Zealand red meat export earnings.
Fonterra has cemented its position as the country’s number one cheesemaker by picking up nine NZ Champion of Cheese trophies this year.
New Zealand dairy processors are welcoming the Government’s commitment to continuing to push for Canada to honour its trade commitments.
An educational programme, set up by Beef + Land New Zealand, to connect farmers virtually with primary and intermediate school students has reported the successful completion of its second year.
Horticulture NZ chief executive Nadine Tunley will step down in August.
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