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

 


Fonterra And Nestlé Realign Latin American Venture

Fonterra And Nestlé Realign Decade Long Latin American Joint Venture


Fonterra and Nestlé have realigned their 10-year old Dairy Partners Americas (DPA) 50/50 joint venture and signed binding agreements covering the revised scope of the alliance.

Under the agreements:

• Fonterra will take a 51 per cent controlling stake in DPA Brazil, with Nestlé holding the balance;
• Fonterra together with a local partner will acquire Nestlé’s share of DPA Venezuela;
• Fonterra will sell its share in DPA’s milk powder manufacturing business to Nestlé;
• Nestlé will buy Fonterra’s share in DPA Ecuador.

Fonterra’s CEO, Theo Spierings, says the DPA joint venture has performed well for ten years and now the time is right to realign the partnership to better reflect the respective strategies of Nestlé and Fonterra in the region.

He says the revised alliance supports Fonterra’s group strategic focus on everyday nutrition in key growth markets such as Latin America, China and Indonesia.

“We value our relationship with Nestlé and this high-quality agreement will see our successful alliance continue.
“The deal also enables the Co-operative to drive more long-term value in the region for its farmer shareholders,” he says.

Fonterra’s Managing Director of Latin America, Alex Turnbull, says: “The region’s economies have undergone considerable change during the past 10 years. We’ve seen increased prosperity in markets like Brazil with rapidurban growth and a focus on healthy nutrition driving demand for dairy products.

“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’s Latin American footprint drives more than 900,000 metric tonnes of volume per year and $3.5 billion (NZD) in revenue from consumer dairy, foodservice and dairy ingredients.

“We are very proud with what we’ve achieved through the DPA joint venture with Nestlé and are looking forward to continuing to work together with renewed focus,” says Mr Turnbull.

The changes to the joint venture are subject to regulatory approval. As a consequence of the realignment,Fonterra expects to receive about $96 million (NZD) in the next financial year.

About Dairy Partners Americas

Set up in 2003, Dairy Partners Americas is the largest dairy company in South America, purchasing and processing more than two billion litres of milk each year in Brazil alone. DPA produces ingredients and consumer products with strong brands in the liquid and chilled dairy market throughout Latin America.

Fonterra licenses brands and provides its large-scale milk procurement, product development, and manufacturing and processing expertise, as well as technical services and certain technology to the alliance.

Nestlé licenses brands and provides its product development, manufacturing and processing expertise, as well as distribution infrastructure to the alliance.

- ENDS -

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Employment: Labour Urges Talley’s To End AFFCO Lockout

Labour has urged Talley’s to resolve the ongoing industrial dispute with AFFCO workers which is having a severe effect on the employees, their families and their communities, Labour’s Workplace Relations spokesperson Iain Lees-Galloway says. More>>

ALSO:

Three Kings: Govt To Oppose Appeal Blocking $1.2B Auckland Housing Plan

Environment Minister Nick Smith and Housing New Zealand have joined legal proceedings in support of Auckland Council and Fletcher Building opposing a bid by community groups to only allow low-rise housing in a $1.2 billion housing redevelopment on the disused site of the Three Kings quarry. More>>

ALSO:

Transport: Jetstar Expands Regional Network With Three New Routes

More New Zealanders than ever before will have access to Jetstar’s affordable flights when new services take off today from Auckland to New Plymouth and Palmerston North, and Nelson to Wellington. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news