Tuesday, 17 November 2015 09:56

Beingmate shareholders approval of Fonterra joint venture

Written by Rural News Group

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Beingmate will own 51% of the joint venture and Fonterra will retain a 49% stake, and run the plant operation.

Fonterra has welcomed the formal approval by the shareholders of Beingmate Baby and Child Food Company Ltd to establish a joint venture to purchase the cooperative's Darnum plant in Australia.

The Beingmate board's formal approval (previously announced on October 29, 2015) was approved by the Beingmate shareholders in China on November 16.

The joint venture will manufacture nutritional powders, including infant formula and other nutritional milk powders, at Darnum in Australia, for Fonterra and Beingmate, and other customers.

Beingmate will own 51% of the JV and Fonterra will retain a 49% stake, and run the plant operation.

Last August, Fonterra and Beingmate announced that they intended to form a global partnership to help meet China's growing demand for infant formula. In March this year Fonterra acquired 18.8% of Beingmate.

The partnership will create a fully integrated global supply chain from the farm gate direct to China's consumers, using Fonterra's milk pools and manufacturing sites in New Zealand, Australia, and Europe.