Fonterra, Nestle open joint venture centre in Brazil

ROELAND VAN DEN BERGH
Last updated 15:06 18/12/2013

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Fonterra and Nestle have opened a $45 million dairy distribution centre in Brazil under their joint venture Dairy Partners Americas.

Fonterra chief executive Theo Spierings said the facility had been built on the same site as Dairy Partners Americas' Araras factory in southern Brazil, which makes a variety of chilled dairy products including yoghurts, desserts and cream cheese.

The centre is expected process more than 200,000 tonnes of dairy products a year for delivery throughout Brazil.

Brazil was an important market for Fonterra due to the country's rapid urban growth and a focus on healthy nutrition which was driving demand for dairy products, Spierings said.

"The new centre enables us to lower distribution costs and move product quickly across the country." he said.

Fonterra's Latin American operations produce more than 900,000 tonnes of goods a year and $3.4 billion in revenue.

Dairy Partners Americas was set up in 2003, and is the largest dairy company in South America.

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