By Nick Stride
Thursday 28th March 2002 |
Text too small? |
The venture, named Dairy Partners Americas, will have first year turnover of $US1.4 billion ($3.2 billion) and will boost Fonterra to the number one position in Latin America.
Fonterra also announced it was "on the ground" in the $50 billion Indian market with a joint venture between its New Zealand Milk subsidiary and India's Britannia Foods.
The formal establishment of Dairy Partners Americas will immediately open up a $300 million market for New Zealand dairy products in South America.
Fonterra becomes Nestle's preferred supplier in Brazil and Mexico and the two are also targeting Argentina, Venezuela, Uruguay, Paraguay, and Chile.
Regulatory approval had been applied for in each country.
Fonterra gains the right to use Nestle brands on its products throughout the Americas but tariff and trade issues remain to be overcome.
The US, for example, is considering a bill that will effectively impose tariffs on imports of New Zealand cheese.
The ventures are seen as positioning the partnership ahead of possible trade deals.
In India New Zealand Milk will not supply product but will make its research and development capabilities available to Britannia.
Existing Britannia products will be upgraded and new products are planned.
Britannia's major business is bakery but it has recently moved into dairy and has a strong distribution network.
The venture is targeting the $5.8 billion "formal" market, which is forecast to grow at around 9% a year.
No comments yet
EROAD FY24 Results and Webinar Details
thl reduces FY24 NPAT guidance
May 6th Morning Report
Spark New Zealand appoints new director to the Spark Board
AFT to announce full year results on May 23 2024
CRP - Korella North Takes Another Two Steps Forward
May 3rd Morning Report
ASB workers to strike as bank proposes an effective pay cut
Rising tides, sinking stocks: study explores cost of climate change
May 2nd Morning Report