Fonterra to sell $54 million worth of cheese to Japanese giant

Fonterra has signed a big deal to sell New Zealand cheese to Japanese food giant Itoham.

Itoham, which has significant interests in New Zealand's beef export sector, will import cheese from Fonterra's New Zealand Milk arm to sell in supermarkets and other retail outlets, according to the Nikkei Report, an English language news service.

Itoham expected to sell four billion yen ($54.85 million) worth of New Zealand Milk product in the 2005-2006 financial year, it said.

The Japanese company is the biggest investor in Anzco Foods, a New Zealand meat exporter which set up Five Star Beef in Canterbury with Itoham Foods in 1989. In 1991, the joint venture opened New Zealand's first large-scale cattle feedlot to supply the Five Star meatworks.

Itoham Foods became Anzco Foods' largest shareholder in a management-led buy-out of the New Zealand Meat Producers Board's shareholding in the company in 1995. Anzco Foods was established in 1984 and is owned by three shareholder groups: Itoham Foods (48.2 per cent), Nippon Suisan Kaisha Ltd (25.2 per cent), and directors and management (26.6 per cent).

Recently Itoham and Anzco were caught up in an abortive attempt to set up a new $20 million Taranaki plant manufacturing hamburgers, salami and beef jerky for the Asian market, at Waitara. The manufacture of Japanese-style hamburgers, beef jerky, salamis and sausages plant worth $100 million a year has been blocked by legal action by a rival meat company.

- NZPA