Fonterra has struck a deal to take control of a dairy venture in Saudi Arabia, the New Zealand dairy giant has told just-food.

The world's largest exporter said today (10 December) that it had reached a "conditional agreement" to buy out venture partner Sadafco from their investment in Saudi New Zealand Milk Products.

Fonterra's move to buy Sadafco's 51% stake is expected to be finalised early next month. The company declined to comment further.

Fonterra has witnessed double-digit growth in the Middle East for the past three years and the company has been looking at expanding its business in the region.

In April, Fonterra announced a deal establishing a partnership with Egypt's Arab Dairy Products Co.

For our July interview with Fonterra Middle East managing director Amr Farghal, click here.