Fonterra lands Mexico government deal

NEW ZEALAND/MEXICO – NZMP, the ingredients division of New Zealand dairy co-operative Fonterra, has signed a $100 million (49.7 million euro) milk powder deal with Mexican state agency Liconsa.

Liconsa is Mexico’s largest importer of milk powder, and is responsible for the supply of milk powder and reconstituted milk in Mexico. The powder will be distributed through Liconsa’s 7,000 retail outlets in Mexico.

NZMP will supply the powder for 12 months. It follows a short-term contract between the companies that was signed last November. The new contract makes Mexico one of New Zealand’s largest dairy markets, with annual sales at around 200 million euro.

The deal follows an announcement earlier in the month by UK dairy firm Dairy Crest that it had signed a similar deal.

Last week, Fonterra shareholders received their first information pack on elections for the company’s board of directors and shareholders’ council.

Voting will run from 30 April to 17 May and results will be finalised and appointments made by 31 May.