Our Partnerships
Fonterra is well placed to form valuable partnerships with other leading global dairy companies.
Our partnerships span the world and are formed on the basis that it is in the interests of everyone to grow the global market for dairy and our overall earnings from it. Our partners include:
Arla Foods
We have partnered with Scandinavia's Arla Foods in a joint venture which is designed to improve our profitability and efficiency in the United Kingdom cheese and spread market. This partnership has united our Anchor brand together with Arla's Lurpak brand and has strengthened our respective positions in the spreads market. We supply bulk product from New Zealand and Arla handles the majority of processing and packaging. This has enabled rationalised production facilities, increased capacity utilisation and provided a basis for a broader relationship with Arla.
Dairy Partners Americas
In March 2002 we established an alliance with Nestle to set up joint ventures in the dairy business in the Americas. We have equal stakes, with Fonterra providing the expertise in large-scale milk procurement, processing, technologies and brands and Nestle providing its brands, product development expertise and distribution infrastructure. Under the arrangement, the joint venture sources fresh milk from dairy farmers in the Americas and its ingredients from New Zealand. Dairy Partners Americas operates in Bermuda, Brazil, Argentina and Ecuador.
DFA
We have a partnership with the world's largest co-operative, Dairy Farmers of America. Through our DairiConcepts joint venture, we are sharing technologies, capital, knowledge and innovation in a way that benefits both parties. Working together, we are manufacturing dairy products at 10 sites across the USA. DairiConcepts is the first commercial manufacturer of milk protein concentrate in the United States.
Dairy America
Since 2001 we have had a valued relationship with Dairy America, an association of seven major US co-operatives. As a result, skim milk produced by Dairy America exported through our global network. We extended the relationship in 2003 as a result of its success.
Clover
In May 2005, Fonterra Co-operative Group concluded an agreement with South Africa's largest dairy company, Clover Industries Ltd to explore dairy ingredients-related opportunities in sub-Saharan Africa. This was followed by the formation of a joint venture company, Clover Fonterra Ingredients (CFI), to handle the marketing of bulk dairy ingredients, carry out contract ingredient manufacturing, and supply food service products to nominated quick-service restaurants throughout the sub-Saharan region.
DMV Fonterra Dairy Excipients
DMV Fonterra Excipients is a joint venture between Fonterra and the major European dairy company Campina and is one of the largest providers of dairy-based excipients to the pharmaceutical market. The joint venture has production plants in New Zealand, Germany and Holland, and provides pharmaceutical-grade lactose, which is used as the carrier for active drug formulations in tablet and inhaler forms.
