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

 

Fonterra exits Dairy Farmers of America joint venture

Fonterra exits Dairy Farmers of America joint venture, retains supply deal

By Paul McBeth


Nov. 19 (BusinessDesk) - Fonterra Cooperative Group, the world's biggest dairy exporter, plans to sell its stake in the DairiConcepts ingredients joint venture with Dairy Farmers of America for some $196 million, after deciding it didn't fit the company's strategy.

The Auckland-based cooperative will sell its 50 percent stake in DairiConcepts to partner DFA on Dec. 31, ending a 15-year venture where Fonterra contributed key ingredients to the US dairy and cheese flavours business, while the American cooperative supplied a number of cheese and cheese-powder assets, it said in a statement. Fonterra signed a long-term supply agreement as part of the sale.


"We still value our relationship with DFA, however as the DairiConcepts business is almost completely stand-alone operationally, we have agreed that it would be simpler for one of the partners to buy the other out," chief executive Theo Spierings said. "The US remains a key part of our global multi-hub strategy and this divestment does not prevent Fonterra from exploring new growth opportunities for this milk pool."

The exit comes as Fonterra pursues closer ties with Chinese partner Beingmate to help meet China's growing demand for infant formula, and will draw on the New Zealand company's global supply chain.

At the same time, it follows the completion of the Trans-Pacific Partnership trade and investment agreement negotiations, which failed to deliver any material gains for New Zealand's dairy sector in securing greater access into the closely protected North American and Japanese markets.

In a separate statement. DFA said it viewed DairiConcepts as playing a key role in growing its ingredients business and extending its global reach. DairiConcepts will operate as a wholly-owned subsidiary of DFA after the purchase is completed, manufacturing cheese, dairy ingredients and dairy flavour systems across eight sites in the US.

Units in the Fonterra Shareholders Fund fell 0.6 percent to $5.45, and have dropped 8 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Stats NZ: Largest Drop In Terms Of Trade In A Decade As Dairy Export Prices Sour

Lower export prices for dairy, meat, and logs in the September 2020 quarter led to the biggest drop in terms of trade since June 2009, Stats NZ said today. Export prices fell in the September 2020 quarter, down 8.3 percent from its highest ever ... More>>

ALSO:

Stats NZ: Election Boosts October Job Numbers

Job numbers were boosted by general election staff in October 2020, along with rises in the manufacturing, retail, and hospitality industries, Stats NZ said today. Filled jobs rose by 27,667 to 2.2 million in October 2020 compared with September, after ... More>>

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>

ALSO:


Media: Discovery, Inc. Completes Acquisition Of New Zealand’s Mediaworks TV Ltd

Auckland, New Zealand, December 1, 2020 - Discovery, Inc. (“Discovery”), the global leader in real-life entertainment, has completed its acquisition of New Zealand’s leading independent free-to-air commercial broadcaster, MediaWorks TV Ltd, now operating ... More>>

Department Of Conservation: Big Year Underway At Albatross Colony

Familiar faces are returning for the new season of Royal Cam, with a big breeding year underway for the toroa/northern royal albatross colony on Otago’s windswept Pukekura/Taiaroa Head. More than 120 albatrosses, a taonga species, have returned ... More>>

Real Estate: ASB Survey Reveals Majority Of Kiwis Expect House Prices To Keep Climbing

ALSO:

House price expectations are soaring as New Zealand’s housing market shifts up a gear. But stretched affordability is putting a dent in perceptions of whether it’s a good time to buy. While Kiwis reveal they do expect interest rates to fall further. ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>

ALSO: