Fonterra invests in milk collection in northern Victoria
Fonterra today announced that from July 2010 it will provide ‘in-house’ milk collection and transportation services for the 300 dairy farmer suppliers in northern Victoria and southern New South Wales who supply Fonterra’s manufacturing sites in Stanhope and Echuca.
Bruce Donnison, Managing Director Fonterra Ingredients Australia, said the decision was made to create consistency across Fonterra’s transport operations. Previously milk collection had been undertaken on Fonterra’s behalf by McColl’s Transport.
“We have enjoyed a successful eight year relationship with McColl’s, but have decided that now is the right time to bring this service in-house and operate our own tanker fleet in northern Victoria, just as we do in other parts of the state and in Tasmania,” said Mr Donnison.
“Today’s decision demonstrates Fonterra’s commitment to the dairy industry in northern Victoria for the long-term.
“Establishing our own transportation service involves a commitment to new tanker equipment worth more than $6 million and employing up to 30 people in northern Victoria,” said Mr Donnison.
“We will be presenting opportunities for existing McColl’s drivers to come and join Fonterra. We are currently in discussions with all stakeholders, including McColl’s, around the best way to make this happen.”
Fonterra’s new transport operations in northern Victoria will be based at an existing transport depot in Rochester owned by Murray Goulburn Cooperative (MG).
“We are pleased to be able to cooperate with MG on this project. Using their existing depot at Rochester will provide cost savings and efficiencies to both parties,” said Mr Donnison.
About Fonterra
Fonterra is a global leader in dairy nutrition – the preferred supplier of dairy ingredients to many of the world’s leading food companies. Fonterra is also a market leader with our own consumer dairy brands in Australia/New Zealand, Asia/Africa, Middle East and Latin America.
The farmer-owned New Zealand co-operative is the largest processor of milk in the world, producing more than two million tonnes of dairy ingredients, value added dairy ingredients, specialty ingredients and consumer products every year. Drawing on generations of dairy expertise, Fonterra is one of the largest investors in dairy based research and innovation in the world. Our 16,000 staff work across the dairy spectrum from advising farmers on sustainable farming and milk production, to ensuring we live up to exacting quality standards and delivering every day on our customer promise in more than 100 markets around the world.
