FON­TERRA DEAL

South Waikato News - - FARMING -

Fon­terra has signed a fiveyear deal to mar­ket and sell two in­fant for­mula in­gre­di­ents made by Bri­tish-based Dairy Crest.

The prod­ucts, a pre­bi­otic called galac­tooligosac­cha­ride (GOS) and dem­iner­alised whey, are both used in the man­u­fac­ture of in­fant for­mu­las.

Fon­terra will be the exclusive sales chan­nel for the in­fant for­mula in­gre­di­ents pro­duced and will re­ceive a com­mis­sion on the sales. Dairy Crest is en­ter­ing into a new­ly­formed joint ven­ture with Bri­tish-based Fayre­field Foods to pro­duce the GOS. These fac­to­ries are ex­pected to be­gin pro­duc­tion next year. Fon­terra chief ex­ec­u­tive Theo Spier­ings said the agree­ment was a win-win for all the com­pa­nies and each would bring their ex­per­tise to the part­ner­ship. "In­fant for­mula is the fastest­grow­ing dairy cat­e­gory in the world," he said.

Fon­terra was the cen­tre of a bot­u­lism scare last year that sparked a mass re­call of whey prod­ucts be­fore test­ing re­vealed it was a false alarm.

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