Fonterra is buying into Oregon-based whey protein concentrate and lactose manufacturer Columbia River Technologies as part of a joint venture.
Columbia River Technologies, founded in 2013, is a joint venture between Tillamook County Creamery Association (TCCA) and Threemile Canyon Farms and produces whey protein products at its facility in Boardman, Oregon. Fonterra has had the exclusive sales agency for these products.
TCCA has held milk supply agreements with Threemile for the last 16 years. The two organisations established the joint venture to maximise efficiencies at TCCA’s cheese-making plant and increase value from the natural whey and lactose by-products of the cheese-making process.
In addition to being an early customer of the whey protein products, Fonterra has shared its dairy expertise with the joint venture since its start-up, through onsite technical support and training.
Fonterra regional director of ingredients America Joe Coote said joining the joint venture as an equal shareholder will enable the company to meet growing demand for ingredients such as whey protein outside New Zealand.
“The agreement reflects Fonterra’s move to develop a sustainable US-sourcing network, providing a reliable and efficient chain of supply, and complementing New Zealand-sourced ingredients for our sports and infant nutrition customers,” he said.
TCCA President and CEO Patrick Criteser said the joint venture aligns with TCCA’s strategy to make responsible use of the by-products of its primary cheese-making business and continue to create value for its farmer-owners.
“We’re pleased to further strengthen our existing relationship with Fonterra, an organisation that understands the cooperative mindset and brings significant expertise in the area of whey products,” he said.
Threemile Canyon Farms general manager Marty Myers added: “This agreement represents the logical alignment of three successful businesses with compatible core principles and values. It leverages each company’s expertise and resources, and reinforces an already strong alliance for future strategic growth.”
Last month Fonterra invested a little over €7 million in Lithuanian dairy producer Rokiskio Suris.
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