Fonterra Partners to Build New Dairy Plant in the Netherlands
With European partner, the New Zealand company will establish a new cheese and a dairy ingredients factory in the Netherlands to supply its European and Asian customers.
Under the agreement, A-ware Food Group will operate a new cheese plant, and Fonterra will operate a dairy ingredients plant alongside it. Whey and lactose produced onsite will be processed into premium nutritional ingredients to supply Fonterra's customers throughout Europe and Asia.
“One of the key priorities identified in Fonterra's recent Strategy Refresh was to focus on nutrition for the vulnerable and to promote mobility among ageing populations globally,” said Spierings. “We have substantial intellectual property in the manufacture of functional whey protein ingredients and have been looking for some time for a source of high quality whey to enable us to commercialize these innovations for our customers around the world.
“With our New Zealand Milk business driving hard to optimize returns, we are producing more milk powders in New Zealand and therefore need alternative sources of whey to meet growth requirements,” Spierings added. “We also need more lactose for our global ingredient business. This partnership will give us greater access to both.”
Koert Liekelema, MD Fonterra Europe added: "With this investment we will secure a high quality whey source that allows for the manufacturing of premium whey protein ingredients at scale. Customer demand for these products is growing fast around the globe."
A-ware in The Netherlands is a significant provider of premium cheese in Europe with a strong history and network. A-ware is well placed to integrate the new cheese plant into its supply chain.
The two companies will now commence full due diligence on the proposal, with a view to concluding the transaction later this year.