Page 1




The world’s largest global milk processor and dairy exporter African Business Coverage Issue 9



Fonterra is a global dairy brand based in New Zealand, with expert farmers at its heart. Fonterra is a co-operatively-owned company which produces 22 billion litres of milk each year sold the world over. Each aspect of Fonterra represents the group’s dedication to nutritious dairy products - even down to its name which means ‘spring from the land’. “Our business is based on sourcing secure, high quality milk and unlocking its natural goodness in ways that add real value to our customers and consumers around the world,” Fonterra says. UNIQUE BUSINESS MODEL From day one, Fonterra’s shareholders have been farmers that have helped it to become a world lead in dairy excellence over the last 140 years. Fonterra has a network of 16,000 staff in New Zealand and around the world working to make dairy available to millions of consumers in 140 countries every day, making it the globe’s largest global milk processor and dairy exporter. The Fonterra team produces more than two million tonnes of dairy ingredients, specialty ingredients and consumer products each year and 95 per cent of these are exported worldwide. LEADING BRANDS A large part of Fonterra’s business is operating consumer brands businesses in key markets across the world which contribute to around 55 per cent of its profit. In Australasia, its brands hold leading positions in cheese, spreads, yoghurts and dairy desserts. In New Zealand, our brands also lead the market in milk, flavoured milk and ice cream.

Across the ASEAN/MENA regions, which include all ASEAN countries as well as Africa and the Middle East, Fonterra’s high value nutritional powders including its Anlene high calcium range for bone health and our Anmum range for mother and child nutrition have a strong market presence. In Latin America, Fonterra operates a joint venture with Nestlé, Dairy Partners Americas, which provides consumer dairy products across Brazil, Venezuela, Ecuador, Argentina and Columbia. Its Soprole business is also a leader in consumer dairy in Chile with the number one or two positions across all major categories. New Zealand milk however is always the company’s first priority. “We have projects underway to improve the way we use our manufacturing plant and supply chain assets in

Performance by design With over 20 years experience in food and biosciences industries for clients around the world, we have the experience, skills and knowledge to deliver integrated solutions in process technology. Our clients include some of the world’s most demanding and sophisticated food and nutritionals processing companies including Fonterra in New Zealand, Australia, the United States and the United Kingdom, Glanbia in Ireland and the United States, South West Cheese and DairiConcepts in New Mexico USA, AB Mauri in China and New Zealand, Abbott in Ireland, Dale Farm and First Milk in the UK. Projects range from nutritional and infant formulae processes technology upgrades and installations to evaporating, drying, powder handling and specialty projects involving, milk, cheese, whey and yeast processing facilities. PDV Consultants have had significant experience in the development of processes and facilities for lactose (milk sugar) facilities for many of their clients. Our consulting engineers are experienced in all aspects of the design and construction of food production processes, utilities and supporting infrastructure. With offices in Europe and Australasia our team will be pleased to discuss your project at any time.

Level 3, Vero House, 127 Alexandra Street, PO Box 4455, Hamilton 3247, New Zealand P 64 (0) 7 838 3727 F 64 (0) 7 838 3009 E

“Our partnership with Beingmate will shOw the Benefits Of an integrated and secure supply chain, starting in new Zealand” Theo SpieringS, FonTerra ChieF exeCuTive New Zealand and drive efficiencies,” Fonterra says. BEINGMATE PARTNERSHIP As part of Fonterra’s growth strategy into China, in August 2014 it announced it had formed a global partnership with leading Chinese infant food manufacturer Beingmate to help meet China’s growing demand for infant formula. 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. The company started the process to issue a partial tender offer to

gain up to a 20 per cent stake in Beingmate. Fonterra Chief Executive Theo Spierings said the partnership between two leading dairy nutrition companies will be a game changer that will provide a direct line into the infant formula market in China, which is the biggest growth story in paediatric nutrition in the world. “Our partnership with Beingmate will show the benefits of an integrated and secure supply chain, starting in New Zealand – our number one milk pool – where we are fast-tracking investment in milk processing capacity to meet global demand,” said Spierings. Fonterra also produces its own milk in China, where the company has two farms and another three under development. Combined, the five farms will produce 150 million litres of milk per year. Fonterra aims to produce up to a billion litres of milk in China by 2018. LEADERS IN INNOVATION Fonterra knows it has to be one step ahead of the game to retain its position in the dairy market. To this end, the company is proud of its world-leading Fonterra Research and Development Centre in New Zealand’s Palmerston North. During its 85 years of operations, it has boasted many world firsts. These developments have included spreadable butter straight from the fridge, the world-leading Anlene range of bone nutrition products, functional milk protein concentrates, ClearProtein and Textured White Base ingredients, which have opened up many new opportunities for products made with dairy ingredients. “Complemented by Innovation Centres in Melbourne, Amsterdam, Chicago, Shanghai and Singapore, our

team in Palmerston North works to understand specific customer and consumer needs in some of the world’s leading dairy market,� Fonterra states. SUSTAINABILITY Fonterra has always been at the forefront of energy saving initiatives and knows that carrying out its operations in the most efficient way possible makes a big difference to the environment. In 2003, Fonterra devised one of New Zealand’s largest energy efficiency programmes aimed at reducing the energy intensity per tonne of product manufactured. In the 2013 financial year, the energy intensity per tonne for ingredient products had decreased by 15% compared to

when the programme began. “This programme is based on conducting an ‘energy blitz’ on a selection of sites each year where projects and investments are identified and then implemented in order to reduce energy use,” says Fonterra. “Focus areas have included heat recovery, refrigeration, compressed air, boiler efficiency improvement, and other energy intensive processes on sites.” Fonterra’s dominance in the market looks set to continue as it keeps progressing closer to its 150th year. “Our story doesn’t end here. Dairy is a pure and natural product with unlimited potential and nutritional possibilities we’ve yet to explore,” it concludes.

Oliver Moy Publisher For enquiries email African Business Coverage Issue 9