18 April 2015 | Online since 2003



4 July 2014|Dairy,Finance,News

Dairy Crest announces global partnership with Fonterra


Dairy Crest, the leading UK-owned dairy foods company, has announced that it has entered into a partnership with Fonterra, the world’s leading dairy exporter. Fonterra will market and sell two products for the fast growing global infant formula market.

Dairy Crest had previously announced a £45 million investment to manufacture demineralised whey powder. This is the base ingredient in infant formula and will be produced from the whey generated at its cheese making factory at Davidstow in Cornwall. Fonterra will receive a commission to sell all of Dairy Crest’s demineralised whey production and will also provide technical and engineering support. The agreement is for a minimum of five years.

Dairy Crest is also announcing a new £20 million capital investment at its Davidstow site to manufacture galacto-oligosaccharide (GOS). GOS is a lactose-based prebiotic, widely used in infant formula. Dairy Crest will enter into a joint venture to produce GOS with UK-based Fayrefield Foods Limited who will provide access to the necessary enzyme and other intellectual property.

Fonterra will supply lactose and will also take responsibility for marketing and selling this product. This project is anticipated to provide an eight year cash payback for Dairy Crest.

The £45 million capital investment in demineralised whey powder is already well underway and on track, with commercial production expected to begin early in 2015/16. Production of GOS is expected to commence later that year.

Mark Allen, Chief Executive, commented: “Demineralised whey powder and GOS form an important part of Dairy Crest’s strategy to grow added value sales. We are excited to be working with Fonterra and Fayrefield Foods to bring these two innovative new products to market. These partnerships, with leading experts in the field, give us exposure to global growth opportunities.”

Fonterra Chief Executive Theo Spierings said the partnership provided the opportunity for both companies to grow volume and value by pooling their expertise. He continued:

“Dairy Crest possesses proven technical expertise, a quality culture and an excellent source of high-quality whey. We are delighted to have the opportunity to partner with them, and provide our global customers paediatric ingredients made in state-of-the-art facilities by a dairy company that shares our commitment to safe, high-quality dairy nutrition.”

The announcement has been welcomed by UK Government. Owen Paterson, Secretary of State at Defra said:

“It’s great to see an exciting development like this, which adds value, supports local talent and promotes British dairy products both at home and abroad. The global market is where the big opportunities lie – dairy product exports increased by more than 39 per cent since 2009 reaching £1.3bn in 2013. This is a superb achievement and I’m delighted that innovative companies like Dairy Crest are seeking to build on that.”

Further support came from the Chancellor George Osborne following a trip in May to Davidstow: “I recently saw first hand what a successful, dynamic, job-creating firm Dairy Crest is.

“A key part of our long term economic plan is to export more of what the UK makes around the world - and this shows we are doing just that.”

Download



Comments


No comments posted yet. Be the first to post a comment

To post comment without approval login or register

Display name

Please enter your name

Email (optional)
Comment

Please enter your comment

Post Comment

Your comment submitted successfully.Please wait for admin approval.

Some error on your process.Please try one more time.



Jobs


17 April 2015
bar team member
Bar Team Member Farmhouse Inns is a family dining pub restaurant backed by one of the biggest brewery and retailing companies...

1 April 2015
Experienced Operator - 1200 acres, Bedfordshire
We are seeking through our Farm Recruitment service key farm positions on behalf of a number of retained clients....

13 April 2015
Technical instructor, Agriculture & Machinery
You will be required to give practical demonstrations and technical instruction in varying aspects of Agriculture and Machine...

17 April 2015
Agricultural Nutritional & Commercial Graduates
As part of our ongoing investment, we have introduced a graduate training program within our feed business, looking to develo...

15 April 2015
Specimen Processor Coordinator
IDEXX Laboratories is the global leader in its field and is engaged in the development, manufacture, and distribution of prod...





Related Companies


Top stories you may have missed
10 April 2015 | Agri Safety

Final phase of Scotland's war on BVD

The permanent eradication of Bovine Viral Diarrhoea [BVD] in Scottish cattl...


10 April 2015 | Dairy

Dairy farmers competitiveness will be te...

The abolition of milk quotas in Europe on 1st April has resulted in a numbe...


10 April 2015 | Cattle

EU milk sector growth 'dependent on expo...

The top 14 milk producing countries in Europe will increase their productio...


10 April 2015 | News

Could the rural vote hold the key to the...

Matt Ware is the NFU's head of government and parliamentary affairs, based ...


10 April 2015 | Arable

Action needed to boost farmgate prices i...

There is a 'desperate need' to improve farmgate returns given low incomes a...


9 April 2015 | Arable

OSR damage risks early Sclerotinia infec...

Rapid stem extension, after a slow start to spring, is likely to create spl...


9 April 2015 | Finance

Time for a farm rent revolution?

The time has come for landlords to expect to see reductions in farm rents, ...


8 April 2015 | Cattle

Cogent strengthens reputation for high c...

Cogent’s reputation as a source of the highest calibre sires has been enhan...


8 April 2015 | Arable

Exotic plant fungus a 'serious threat to...

The spread of exotic and aggressive strains of a plant fungus is presenting...


7 April 2015 | Animal Health

Share information to tackle food fraud, ...

The FSA’s new Food Crime Unit wants the industry to share information, some...