Fonterra is in the final stages of buying land to develop a
pilot dairy farm in Brazil, as part of its strategy to
establish "best practice" dairy farms in the fast growing
economies of Asia and Latin America.
The dairy co-operative is also developing a second dairy farm
in China and conducting a feasibility study into a joint
venture dairy farm in India.
Fonterra has signed a conditional sale and purchase agreement
to buy an 850ha farm in the mid-west of Goias State in Brazil
and is now conducting final due diligence.
The intention was to develop two milking platforms, with a
total herd of 3300 cows, which would be producing milk by
late 2014.
Fonterra's investment in the pasture-based dairy farm would
be the first step in developing a source of high-quality
fresh milk in Brazil to support Dairy Partners Americas (DPA)
- Fonterra's South American joint venture with Nestle,
Fonterra chief executive Andrew Ferrier said yesterday.
If the pilot proved successful, Fonterra intended to develop
more farms in Brazil.
Demand for dairy around the world was growing by 2% a year,
Mr Ferrier said.
"New Zealand milk will always be our top priority. While New
Zealand milk production is forecast to grow at a long-term
average of 2%-3%, we are looking offshore to supplement this
and ensure we meet the growth potential for dairy globally,"
he said.
One of the fastest-growing United States milk co-operatives,
California Dairies, says it is preparing to sell skim milk
powder online through Fonterra's internet auctions, NZPA has
reported.
California Dairies, which produces nearly a 10th of US milk,
is planning to sell skim milk power through Fonterra's
globaldairytrade website later this year, agrimoney.com
reported.
"It is being talked about for no sooner than September," Eric
Ebra, senior vice-president of administrative affairs for
California Dairies, said.
The plans were revealed at an industry meeting.
Fonterra already has a link with the company - it uses
California Dairies milk to make cheese and yoghurt
ingredients in California.
- sally.rae@odt.co.nz
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