Chief executive Theo Spierings said China was a key strategic market for Fonterra, and the global partnership with Beingmate would provide significant growth potential for both companies.
In August 2014, Fonterra and Beingmate said they planned to form a global partnership to help meet China’s growing demand for infant formula. In March this year Fonterra acquired 18.8 per cent of Beingmate.
«The partnership will create a fully integrated global supply chain from the farm gate direct to China’s consumers, using Fonterra’s milk pools and manufacturing sites in New Zealand, Australia, and Europe,» Spierings said on Thursday.
«By working with Beingmate, we are creating additional demand for ingredients and high-value paediatric and maternal nutrition products made from our New Zealand milk, complemented by milk drawn from other international milk pools,» he said.
The Australian joint venture would manufacture nutritional powders, including infant formula and other nutritional milk powders, at Darnum in Victoria, for Fonterra and Beingmate and other customers.
Beingmate would own 51 per cent of the joint venture and Fonterra, with a 49 per cent stake, would run the plant operation.
«Our partnership with Beingmate is already strengthening the presence of our Anmum infant formula brand. Distribution through Beingmate is underway, with the first shipments landed in China in June,» Spierings said.
The Beingmate board’s approval will be put to a vote of Beingmate shareholders on November 16.
Source: Stuff
