Fonterra in Euro move
Published 13/09/2011 | 05:00
Fonterra completed its first move into the European dairy sector last week through a joint venture with the UK's largest dairy co-op, First Milk.
The deal allows Fonterra to side-step import duties on sales of its high value whey proteins to EU nutrition drink manufacturers.
At the same time, it allows First Milk, who buys 15pc of all the milk produced in the UK, to add value to whey by-products from its cheese processing plant in northern England.
Fonterra's managing director for Europe, Koert Liekelema, said the company is looking for more such deals in the region.
He added that these types of ventures allowed the world's biggest dairy exporter to channel more of its milk into expanding markets in Asia.