Fonterra expects to net $96 million in the next financial year following what it called a realignment of its 10-year-old Dairy Partners Americas 50/50 joint venture with Nestle.
Under the agreements, Fonterra will take a 51 per cent controlling stake in DPA Brazil, with Nestle holding the balance.
Fonterra, together with a local partner, will acquire Nestle's share of DPA Venezuela.
In addition, Fonterra will sell its share in DPA's milk powder manufacturing business to Nestle and Nestle will buy Fonterra's share in DPA Ecuador.
Dairy Partners Americas is the largest dairy company in South America, buying and processing more than two billion litres of milk each year in Brazil alone.