Latin American joint venture realigned
FONTERRA AND NESTLÉ have realigned their 10-year old Dairy Partners Americas (DPA) 50/50 joint venture and signed binding agreements covering the revised scope of the alliance.
The combined populations of these countries exceed 400 million. Brazil alone has 200 million people. Chile and Colombia are projecting growth of over 5% per annum. Mexico offers great strategic opportunities into the United States, and has just signed on to negotiations for the Trans-Pacific Partnership.
In every country we visited the topic of discussion was the challenge the world faces in feeding its rapidly growing population. New Zealand is a nation of 4.4 million that feeds about 40 million and exports to over 160 countries, so Latin America looks to us for leadership on this issue.
New Zealand has a great reputation in this part of the world for our high quality produce. We are known for being innovative in leading the world in the way we do business, and for the way our government provides an environment for business to get ahead.
We are also highly regarded for the systems we have in place to assure our customers our produce is safe, ethical, environmentally sustainable and high quality.
The scope for development in Latin America is huge. Columbia, Chile and Brazil respectively have millions of hectares potentially suitable for agricultural production. Latin America has the land, we have the expertise.
In particular Latin America is behind New Zealand in dairy productivity. New Zealand produces almost four times as much milk per cow as Colombia. And in Brazil, a country with 200 million cattle, nearly three quarters of their dairy cows are hand milked.
New Zealand is in a strong position to work with these countries to help lift their agricultural performance.
It is in our interest to work with these countries, establish close links, and develop business opportunities for New Zealand companies.
On the trade mission real progress was made. Colombian President Santos says he wants New Zealand and Colombia to negotiate a free trade agreement
I also signed cooperation agreements with Mexico, Colombia and Chile.
Every country we visited expressed a real desire to see increased investment of capital and skills by New Zealand.
• Nathan Guy is the Minister for Primary Industries.
