Fonterra Co-operative Group says it will sell its 50% interest in DairiConcepts, the Co-operative’s US joint venture with Dairy Farmers of America (DFA) as it does consider the partnership to be a non-core component of its strategy.
DFA will purchase Fonterra’s 50% interest on 31 December 2015 for about NZD$196 million (US$129 million).
The DairiConcepts partnership was established in 2000 when Fonterra contributed its US dairy/cheese flavors business and DFA contributed cheese and cheese-powder assets.
Fonterra and DFA were both founding members of the Global Dairy Platform and had a shared interest in promoting the growth in global dairy consumption and the further development of co-operative dairy farming.
