Fonterra seals deal to increase infant formula production

Fonterra Australia has signed a five-year strategic agreement with Bellamy’s Australia to manufacture a range of new baby nutritional powders.

The two companies will work to finalise the proposed arrangements by the end of the year, with the agreement commencing in 2016. The “multi-million dollar” agreement will help support the growth of Bellamy’s Organic infant formula in Australia and abroad, and build on the firms’ existing relationship.

Fonterra Oceania managing director Judith Swales said that the announcement was part of Fonterra’s transformation of its Australian business. “This is our strategy in action for Australia where we focus on the areas we can win in a highly competitive market to deliver the best returns,” Swales said.

“We are actively growing our nutritionals business through strategic partnerships and agreements which will see the Darnum nutritionals plant [in Victoria] move towards full capacity.

“Our Australian business has particular ingredients strengths in cheese, whey and nutritionals, complemented by our strong consumer and foodservice businesses; and today’s announcement with Bellamy’s Australia – one of the fastest growing infant formula companies – reaffirms our strength in nutritionals.”

Ms Swales continued: “We are also nearing the finalisation of the Darnum joint venture with Beingmate Baby and Child Food Company Ltd following the recent formal approval by Beingmate’s Board and shareholders.”