New Zealand dairy giant Fonterra and Swiss food giant Nestlé are to extend their Dairy Partners Americas (DPA) joint venture to include Ecuador, Colombia and Trinidad & Tobago.

In a joint statement, the two companies said the new ventures would involve the manufacture of basic milk powders in Ecuador and Colombia, the manufacture, marketing, sales and distribution of dairy chilled and liquid products in Ecuador and a dairy chilled and liquid joint venture in Trinidad & Tobago.

The new joint ventures will start operating at the beginning of July this year and will be incorporated in the existing regional management structure.

The alliance between the two companies was agreed in March 2002, and aims to secure a cost competitive supply of fresh milk and milk ingredients, to build strong positions in the chilled and liquid milk businesses and to realise a wide range of synergies in dairy operations to become the cost leader of this part of the milk sector.

The first phase was implemented in January 2003 with the start up of five joint ventures in Brazil, Venezuela and Argentina, creation of a DPA regional management organisation and the sale of Fonterra’s milk powder businesses in Venezuela, various countries of Central America, the Caribbean, Dominican Republic and Peru to Nestlé.  

Dairy Partners Americas collects fresh milk and produces basic milk powders in Brazil and Argentina and operates chilled dairy facilities in Brazil, Argentina and Venezuela.