New Zealand dairy co-operative Fonterra Co-operative Group Limited and Chinese infant food manufacturer Beingmate intend to form a global partnership that will help meet China’s growing demand for
infant formula.
The partnership is said to 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.
The partnership is intended to increase the volume and value of Fonterra’s ingredients and branded products exported to China.
It will be achieved in two phases:
– Fonterra will shortly start the process to issue a partial tender offer to gain up to a 20% stake in Beingmate, and
– After gaining regulatory approvals and Fonterra satisfactorily completing the partial tender offer, the two companies will set up a joint venture to purchase Fonterra’s Darnum plant in Australia and will establish a distribution agreement to sell Fonterra’s Anmum brand in China.
Fonterra chief executive Theo Spierings said the partnership will provide a direct line into the infant formula market in China, which is the biggest growth story in paediatric nutrition in the world.
The partnership will also play a part in promoting leading product quality and safety standards in the infant formula market in China, participating in the ongoing development of the Chinese dairy industry, and supporting the development of Beingmate’s business.
