To Press Releases listVevey,April 19, 2004
Nestlé and New Zealand's Fonterra Co-operative Group Ltd. announce the second phase of implementation of Dairy Partners Americas (DPA). Through the creation of individual joint ventures at country level, it will cover Ecuador, Colombia, and Trinidad & Tobago. The alliance partners plan on :
- a joint venture for the manufacture of basic milk powders in Ecuador and Colombia, respectively
- a joint venture for the manufacture, marketing, sales and distribution of dairy chilled and liquid products in Ecuador
- a dairy chilled and liquid joint venture in Trinidad & Tobago.
The new DPA joint ventures in Ecuador and Colombia will become operational on July 1, 2004 and will be incorporated in the existing regional management structure.
The DPA Alliance, signed in March 2002, aims to secure cost competitive supply of fresh milk and milk ingredients, to build strong positions in chilled and liquid milk businesses and to realize a wide range of synergies in dairy operations to become the cost leader of this part of the milk sector.
The first phase was implemented in January 2003 with the start up of five joint ventures in Brazil, Venezuela and Argentina, creation of a DPA Regional Management organization and the sale of Fonterra's milk powder businesses to Nestlé in Venezuela, various countries of Central America, the Caribbean, Dominican Republic and Peru.
Today, Dairy Partners Americas already collects fresh milk and produces basic milk powders in Brazil and Argentina and operates chilled dairy facilities in Brazil, Argentina and Venezuela. Currently, the individual joint ventures of the alliance cover 11 sites with over 3,100 employees and are sourcing about 2.2 billion liters of fresh milk a year.
- Media: François-Xavier Perroud Tel.: +41-21-924 2596
- Investors: Roddy Child-Villiers Tel.: +41-21-924 3622