There's $196m coming into Fonterra's coffers after its US sale. Photo / NZ Herald
There's $196m coming into Fonterra's coffers after its US sale. Photo / NZ Herald
Fonterra said it would sell its 50 per cent interest in DairiConcepts, the co-operative's US joint venture with Dairy Farmers of America (DFA), effective from December 31, for about $196 million.
The DairiConcepts partnership was established in 2000 when Fonterra contributed its US dairy/cheese flavours business and DFA contributed anumber of cheese and cheese-powder assets.
Fonterra chief executive Theo Spierings said that the transaction would not affect the longstanding relationship with DFA.
Fonterra and DFA were both founding members of the Global Dairy Platform and had a shared interest in promoting the growth in global dairy consumption and the further development of co-operative dairy farming. Fonterra had decided to exit the partnership as it was considered to be a non-core component of its strategy, Spierings said.
