Fonterra, DairyAmerica to end marketing relationship

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An agreement under which New Zealand’s Fonterra acted as the skim milk export agent for U.S dairy marketing association DairyAmerica will not be renewed when the current contract expires Aug. 1, 2014, the companies confirmed in a press release on Feb. 10.

DairyAmerica is a federated marketing cooperative association. Its members include Agri-Mark, Inc., California Dairies, Inc., O-AT-KA Milk Producers, Inc., and United Dairymen of Arizona. At one time, Land O’Lakes Inc., Maryland & Virginia Milk Producers Association, Dairy Farmers of America and Lone Star Milk Producers also had membership in DairyAmerica.

The current relationship between DairyAmerica and Fonterra will continue through the life of the current agreement. In announcing the end of the contract, both parties said the timing is right for DairyAmerica to chart a more independent course directly to customers in export markets.

"We are increasing the availability of our product to the international market and see this as the right time to chart our own course and sell direct to customers,” Hoyt Huffman, DairyAmerica CEO. “This would not have been possible without the support of Fonterra over the course of the relationship."

"From the start DairyAmerica have been open about building their own market access capabilities,” noted Fonterra Director of Global Sales, Tim Deane. “We've supported them with our well established sales channels and now the timing is right for them to go out on their own."

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