Fonterra Co-operative Group Limited and the Board of Beingmate Baby and Child Food Company will form a joint venture (JV) to purchase the Co-operative’s Darnum plant in Australia.
Fonterra’s chief executive Theo Spierings said China is a key strategic market for Fonterra, and the global partnership with Beingmate provides significant growth potential for both companies.
“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,” says Spierings.
“By working with Beingmate, we are creating additional demand for ingredients and high-value pediatric and maternal nutrition products made from our New Zealand milk, complemented by milk drawn from other international milk pools.”
“The Australian joint venture will manufacture nutritional powders, including infant formula and other nutritional milk powders, at Darnum in Victoria, for Fonterra and Beingmate and other customers,” he adds.
Beingmate will own 51% of the JV and Fonterra will retain 49% stake, and 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,” says Spierings.
“Beingmate has an extensive distribution and sales network with significant growth potential and the company continues to pursue a leading position in the China infant formula market.”
In August 2014, Fonterra and Beingmate announced that they intended to form a global partnership to help meet China’s growing demand for infant formula.
In March 2015, Fonterra acquired 18.8% of Beingmate.