Fonterra to buy farm in Brazil
Fonterra is in the final stages of plans to buy land in Brazil to develop a pilot dairy farm there.
Fonterra is in the final stages of plans to buy land in Brazil to develop a pilot dairy farm there.
The co-operative has signed a conditional sale and purchase agreement to buy an 850 hectare farm in the mid-west of Goias State. It was now conducting final due diligence with a view to concluding the sale next month.
Chief executive Andrew Ferrier said the plan was to develop two milking platforms, with a total herd of 3,300 cows, which would be producing high quality milk by late 2014.
The 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, Fonterra’s South American joint venture with Nestle, Mr Ferrier said.
The purchase is in line with Fonterra's strategy to establish best practice dairy farms in the fast growing economies of Asia and Latin America, he said.
Global demand for dairy products is forecast to rise steadily. The Food and Agriculture Organisation of the United Nations has predicted there will be an additional 2.3 billion people by 2050, requiring a 70% rise in agricultural production.
Fonterra is also developing a second dairy farm in China and is conducting a feasibility study into a joint venture dairy farm in India.
Colin Williscroft
Thu, 12 May 2011
Thu, 12 May 2011
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Fonterra to buy farm in Brazil
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