Fonterra inks deal with UK firm

NIKO KLOETEN
Last updated 09:27 04/07/2014

Relevant offers

Dairy

Chinese stockmarket slide cause for minor concern Cows master maze, making mice look like dimwits Collaboration behind environmental success Dairy farmers crack down on costs Xmas present for dairy farmers Studholme and Glenavy dairy factory projects on schedule, say owners Dairy industry facing a 'perfect storm' of excess supply warns Bill English Dairy Holdings: simple business model maintaining a competitive advantage Farmers are still feeling the impact of floods Keep a watch of your dairy bulls

Fonterra has signed a five-year deal to market and sell two infant formula ingredients made by British-based Dairy Crest.

The products, a prebiotic called galacto-oligosaccharide (GOS) and demineralised whey, are both used in the manufacture of infant formulas.

Fonterra will be the exclusive sales channel for the infant formula ingredients produced and will receive a commission on the sales.

Dairy Crest is entering into a newly-formed joint venture with British-based Fayrefield Foods to produce the GOS. These factories are expected to begin production next year.

Fonterra chief executive Theo Spierings said the agreement was a win-win for all the companies and each would bring their expertise to the partnership.

He said the deal aligned with Fonterra's strategy to develop a leading position in the global infant-formula market.

"Infant formula is the fastest-growing dairy category in the world," he said.

"Demand is particularly strong in Asia, where China is the leading global infant-formula market."

Fonterra was the centre of a botulism scare last year that sparked a mass recall of whey products before testing revealed it was a false alarm.

The dairy co-operative still faces legal action from French food giant Danone, which has said it lost €350 million (NZ$544m) as a result of the recall.

Ad Feedback

- Stuff

Special offers

Featured Promotions

Sponsored Content