Fonterra progresses with Beingmate

Fonterra welcomes formal approval by the board of Beingmate Baby and Child Food to establish a joint venture to purchase the co-operative’s Darnum plant in Australia. Speaking of the growth potential for both companies, chief executive at Fonterra, Theo Spierings, comments, “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.

“By working with Beingmate, we are creating additional demand for ingredients and high value paediatric 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.”

Beingmate will own 51% of the joint venture and Fonterra will retain a 49% stake, and run the plant operation. Distribution of the Anmum brand through Beingmate is underway, with the first shipments landed in China in June.

“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,” he adds.