Fonterra forms South African joint venture

Fonterra has formed a new joint venture with South African dairy company Clover Industries Ltd after getting the go-ahead from South Africa's Competition Tribunal.

The companies have formed Clover Fonterra Ingredients (CFI) to handle the marketing of bulk dairy ingredients, mainly milk powder. CFI will also carry out contract ingredient manufacturing, and supply food service products to nominated quick-service restaurants throughout the sub-Saharan region.

The joint venture received approval from South Africa's competition watchdog on May 13.

The new company will be headed by Clover executive Pieter Uys, who will report to a board of directors made up of Fonterra and Clover executives.

Fonterra (South Africa) general manager Malcolm Tweed said in a statement that CFI would give customers a broader product range with greater security of supply and an enhanced product development capability.

Clover is South Africa's largest dairy company and processes about 30 per cent of South Africa's milk, mainly for the retail market.

Fonterra is the world's largest dairy ingredients company, collecting more than 13 billion litres of milk a year to market more than 2 million tonnes of dairy products.

- NZPA