Fonterra inks deal with UK firm

Last updated 09:27 04/07/2014

Relevant offers


Record jail sentence for animal abuser Michael Whitelock Green Party: Dairy conversions must stop for clean rivers to work Leading Taranaki sharemilkers devise ways to manage payout volatility Kiwi owners put Australia's biggest dairy farming operation on the market At least Fonterra is transparent about its executives' salaries Clean dairying like cooking with gas for Waikato farmer New rules to ensure NZ raw milk suppliers verified Hundreds of Filipinos could be forced home after working with faked documents Westland Milk pays $4.95 a kg of milksolids for 2014-15 Dairy payout leader Tatua out in front again

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