Fonterra and Australian baby food maker Bellamy’s Australia have announced an agreement to produce a range of baby nutritional powders.
The New Zealand dairy giant said the five-year, “multi-million dollar” deal is part of its “transformation” of its Australian business.
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The products will be made at Fonterra’s Darnum nutritionals plant, allowing the plant to move towards full capacity, the company said.
“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,” said Judith Swales, Fonterra’s managing director for Oceania. “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.
“The Darnum plant is a leading nutritionals plant in Fonterra’s global network. Leveraging our Fonterra Research and Development Centre in Palmerston North, the largest dairy innovation centre in the southern hemisphere, we will bring innovation to the Darnum plant and the nutritionals market to capture growing demand.”
Fonterra said the agreement would help to support the growth of Bellamy’s Organic in Australia and abroad.
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By GlobalDataLaura McBain, CEO and MD for Bellamy’s, added: “We have been working throughout this year to seamlessly add capacity so that we can meet the growing demand for our certified organic formulas from Australian parents and our export markets. This arrangement means that significant additional capacity would be available to Bellamy’s, adding to its current capabilities.”
The agreement is expected to start next year.
