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.