Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fonterra and Nestle overhaul Latin American joint venture

Fonterra and Nestle overhaul Latin American joint venture

By Paul McBeth

May. 28 (BusinessDesk) - Fonterra Cooperative Group and Nestle are overhauling their Latin American 50/50 joint venture, with the New Zealand dairy exporter getting the liquids business and the Swiss group buying the milk processing plants.

New Zealand's biggest company will take a 51 percent stake in Dairy Partners Americas Brazil, which will continue to commercialise chilled dairy products, while Fonterra and a local partner will take Nestlé's share of DPA Venezuela, Fonterra said in a statement. Fonterra will sell its share in the DPA milk powder manufacturing businesses and DPA Ecuador to Nestle, the world's biggest food group, and expects to receive $96 million in the next financial year.

"We've seen increased prosperity in markets like Brazil with rapid urban growth and a focus on healthy nutrition driving demand for dairy products," Fonterra managing director Latin America Alex Turnbull said. "A bigger stake in DPA Brazil means we will be well-placed to drive our volume and value growth strategy focusing on everyday nutrition offerings."

Fonterra, which is scheduled to update its forecast payout to farmer shareholders today, produces more than 900,000 metric tonnes of dairy products per year, with some $3.5 billion in revenue from consumer dairy, food service and dairy ingredients, it said.

The tweak to the decade-long agreement is subject to regulatory approval.

Units in the Fonterra Shareholders' Fund, which gives investors exposure to the group's dividends, rose 1.4 percent to $6 yesterday, and have gained 3.5 percent this year.

Swiss-listed Nestle's shares slipped 0.4 percent to 69.55 Swiss francs, and have advanced 7 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

OceanaGold: Man Killed In Waihi Mine Accident

A 29-year-old man had died following a work place accident at OceanaGold mine, Waihi last night. The man was killed after the front end loader he was in rolled down a slope. The accident happened at approximately 6.30pm on Thursday night. More>>

ALSO:

Constructing Consent: Annual Housing Consents Highest In Over A Decade

More than 29,000 new homes gained building consent in the year to June 2016, up 16 percent from the previous June year, Statistics New Zealand said today. More>>

ALSO:

War Against Weevil For Future Peas: “No Peas, No Weevil” Ban Now In Place In Wairarapa

The Ministry for Primary Industries (MPI) has today placed a ban on growing peas within a specified area and placed controls on moving pea material (seed and untreated pea straw) within, in and out of this area for the next 2 years. More>>

ALSO:

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news