Fonterra’s South American venture with Nestle opens $45m distribution centre in Brazil
Fonterra Cooperative Group's South American joint venture with Nestle opened a $45 million distribution centre alongside its Araras, Brazil factory to distribute more than 200,000 metric tonnes of dairy products a year across South America's biggest economy.
Auckland-based Fonterra and Nestle formed Dairy Partners Americas, South America's largest dairy company, in 2003 to take advantage of rising demand for milk and dairy products in fast-growing emerging economies.
"Brazil is an important market for Fonterra," chief executive Theo Spierings said in a statement. "Rapid urban growth and a focus on healthy nutrition are driving demand for dairy products. The new centre enables us to lower distribution costs and move product quickly across the country."
Units in the Fonterra Shareholders' Fund, which gives outside investors access to the company's dividend stream, gained 0.2 percent to $5.79 today, and have sunk 18 percent this year.