Fonterra trims board size
Fonterra’s board has been reduced to nine - comprising six farmer-elected and three appointed directors.
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.
