Fonterra says it doesn't want stake in Israeli dairy company

Fonterra Cooperative Group has rejected Israeli reports that it is competing with global dairy giants Kraft Foods and Nestle to buy a stake in Israel's biggest dairy company, Tnuva.

"Fonterra has no interest in buying a stake in the Israeli dairy company," a spokesman for the New Zealand company said today.

An Israeli business news website, Globes, reported last night that Tnuva was negotiating with Fonterra's New Zealand Milk arm and the other dairy multinationals as part of its attempts to obtain a strategic partnership.

Tnuva controls 70 per cent of the country's dairy trade, and has been valued at between two billion and three billion shekels ($747 million - $1.12 billion).

Fonterra already has an investment in Israel, 30 per cent of a US$34 million ($57 million) Ba'Emek Technologies whey processing plant, shared with Tnuva (50 per cent) and Canadian investment company Penhold (20 per cent).

Two-thirds of the New Zealand equity was contributed in the form of technical knowledge of whey processing and the skills of its global marketing network.

- NZPA