Fonterra acquires Tamar Valley Dairy assets

Fonterra will acquire the assets of Tasmanian yoghurt producer Tamar Valley Dairy, including its processing equipment, related services, intellectual property and trademark. Fonterra says it intends to keep the business in Tasmania and retain as many of its employees as possible.

“Fonterra is a longstanding partner of Tamar Valley Dairy and has supported and worked closely with the administrators of the family-owned business during what has recently been a difficult period for the Tasmanian business and its founders,” said Judith Swales, managing director, Fonterra Australia.

“The founding family has created a business with strong capability and innovation, known for producing new yoghurt formats and formulations, and in a relatively short timeframe they have built a national brand in Tamar Valley Dairy.”

Once the acquisition is complete, Fonterra will upgrade Tamar Valley’s quality and safety systems, invest in improving its manufacturing assets and build capability for further innovation in the yoghurt category.

The Tamar Valley Dairy site will be fully integrated into Fonterra’s Tasmanian and Australian manufacturing footprint.

Fonterra’s two Tasmanian manufacturing facilities, in Spreyton and Wynyard, are responsible for processing more than half of Tasmania’s milk. The company has invested $20 million in these facilities over the last two years.