The Beingmate Baby and Child Food Company has granted its approval for the establishment of a joint venture with Fonterra to acquire the dairy giant’s Darnum plant in Australia.
The global partnership with Beingmate will provide significant growth potential for both companies, Fonterra said in a media release.
Beingmate will own 51 per cent of the joint venture and Fonterra will retain a 49 per cent stake, and run the plant operation.
The Australian joint venture will manufacture nutritional powders, including infant formula and other nutritional milk powders, at Darnum in Victoria, for Fonterra and Beingmate and other customers.
The global partnership was announced back in August, 2014. In March, Fonterra acquired 18.8% of the Chinese infant formula maker.
The partnership is aimed at increasing the volume and value of Fonterra’s ingredients and branded products exported to China.
“The partnership will create a fully integrated global supply chain from the farm gate direct to China’s consumers, using Fonterra’s milk pools and manufacturing sites in New Zealand, Australia, and Europe. By working with Beingmate, we are creating additional demand for ingredients and high-value paediatric and maternal nutrition products made from our New Zealand milk, complemented by milk drawn from other international milk pools,” said Chief Executive Theo Spierings.
“The Beingmate Board’s approval is a further important step in our partnership. It is also another milestone in our strategy to increase the volume and value of products we export to China. Our partnership with Beingmate is already strengthening the presence of our Anmum infant formula brand. Distribution through Beingmate is underway, with the first shipments landed in China in June. Beingmate has an extensive distribution and sales network with significant growth potential and the company continues to pursue a leading position in the China infant formula market.”