Fonterra to open processing plant in Netherlands

Fonterra has signed a memorandum of understanding with Netherlands-based company A-ware Food Group to establish a cheese and dairy factory in the Netherlands. The companies plan to open two factories side by side: A-ware will operate a cheese plant and Fonterra will operate a dairy ingredients plant.

Whey and lactose produced by the two plants will be processed into ‘premium nutritional ingredients’ for Fonterra’s Europe and Asia markets. Fonterra CEO Theo Spierings said the investment fits in well with Fonterra’s strategy to focus on nutrition for the vulnerable and to promote mobility among ageing populations globally.

“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 commercialise these innovations for our customers around the world,” Spierings said.

“With our New Zealand milk business driving hard to optimise returns, we are producing more milk powders in New Zealand and therefore need alternative sources of whey to meet growth requirements. We also need more lactose for our global ingredient business. This partnership will give us greater access to both.”

The two companies hope to conclude the transaction later in 2012.