increase font size
Fonterra chief executive Theo Spierings.
Fonterra has received approval by the Beingmate Baby and Child Food board to establish a joint venture to purchase the co-op's Darnum plant in Australia.
Fonterra chief executive Theo Spierings says China is a key strategic market, and the global partnership with Beingmate provides significant growth potential for both companies.
"The partnership will create a fully integrated global supply chain from the farm gate direct to China's consumers, using Fonterra's milk pools and manufacturing sites in New Zealand, Australia, and Europe."
Spierings says working with Beingmate creates additional demand for ingredients and high-value paediatric and maternal nutrition products made from Fonterra milk, complemented by milk drawn from other international milk pools.
"The Beingmate Board's approval is a further important step in our partnership. It is also another milestone in our strategy to increase the volume and value of products we export to China."
The joint venture will manufacture nutritional powders, including infant formula and other nutritional milk powders, at Darnum in Victoria, for Fonterra and Beingmate and other customers.
Beingmate will own 51% of the joint venture and Fonterra will retain a 49% stake, and run the plant operation.
"Our partnership with Beingmate is already strengthening the presence of our Anmum infant formula brand. Distribution through Beingmate is underway, with the first shipments landed in China in June," says Spierings.
"Beingmate has an extensive distribution and sales network with significant growth potential and the company continues to pursue a leading position in the China infant formula market."
The Beingmate Board's approval of the joint venture will be put to a vote of Beingmate shareholders at an EGM on November 16.
In August 2014, Fonterra and Beingmate announced they planned to form a global partnership to help meet China's growing demand for infant formula. In March this year, Fonterra acquired 18.8% of Beingmate.
OPINION: Farmer shareholders of two of New Zealand's largest co-operatives have an important decision to make this month and what they decide could change the landscape of the dairy and meat sectors in New Zealand.
OPINION: As CEO of the Dairy Board in the 1980s I was fortunate to work with a team of experienced and capable executives who made most of the brand investments that created the international consumer business Fonterra inherited. Soprole in Chile was the largest, but there were more than 20 countries where consumer marketing companies were established and Anchor and other brands were successfully launched.
Fonterra has delivered a fifth straight year of record organic milk price for farmer suppliers.
Fonterra says favourable weather conditions supporting pasture growth is boosting milk production.
Fonterra chair Peter McBride, fellow directors and the management team, will front up farmer shareholders next week to explain the metrics around the proposed $4.22 billion divestment plan.
The heart wants what the heart wants - and River Foster knew that he wanted to be working outdoors, not in cardiology.
Over 240 growers, industry leaders and guests from across the country gathered in Gisborne last month to attend the inaugural Citrus New Zealand Awards dinner celebrating excellence in the sector.
Tomato growers are facing a challenge like never before over the rising cost of energy and the uncertainty of supply.
It's been a fantastic season so far.
A US-based company developing a vaccine to reduce methane emissions in cattle has received another capital injection from New Zealand’s agriculture sector.
Wools of New Zealand has signed a partnership agreement with a leading Chinese manufacturer as the company looks to further grow demand in China and globally.
OPINION: Dairy industry players are also falling by the wayside as the economic downturn bites around the country.
OPINION: Methane Science Accord, a farmer-led organisation advocating for zero tax on ruminant methane, will be quietly celebrating its first…
