30 May 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


11 May 2015
Job in Derbyshire for tractor driver - contracting - silage work, fencing work, sheep and cattle work.
We are looking for someone for the seasonal contract silage work and fencing work. Also we have 65 suckler cows wit...

18 May 2015
Stockman / Tractor driver / general farm worker; Job on large progressive livestock farm in Aberdeenshire
Experienced stockman required to join small team to assist with 300 suckler cows and pedigree flock of 200 ewes. Duties will ...

20 July 2015
Skilled Job for English Speaking Tractor Driver required for harvest and autumn cultivation.  > Hertfordshire
Family farm close to London requires a tractor driver who has experience of minimum tillage  cultivation using a tine master ...

19 May 2015
Class 1 C+E Drivers required for farm grain collection - permanent job. Cambridgeshire.
Class 1 C+E Drivers - Permanent. Drivers required for our modern bulk tipper articulated fleet. Digital Tachograph card and C...

20 July 2015
Massey Ferguson big baler driver for harvest work: Job in Yorkshire
Contractor looking for an experienced tractor driver to operate Massey Ferguson big square baler and other farm duties.



Top stories you may have missed
15 May 2015 | Arable

Scotland’s Rural Affairs Secretary Richard Lochhead is calling on the Europ...


15 May 2015 | Finance

As the country settles down following the turmoil of the general election, ...


14 May 2015 | Animal Health

New research from the Universities of Bristol and Cambridge has found that ...


13 May 2015 | Animal Health

A new publication to help farmers prevent sheep lameness and offer advice o...


12 May 2015 | Agri Safety

The Farmers’ Union of Wales is putting the spotlight on Liver fluke at next...


5 May 2015 | News

The UK is now third in the global rankings for utility-scale solar energy a...


29 April 2015 | Agri Safety

A recent Rural Watch demonstration and information event gave Farmers’ Unio...


24 April 2015 | Meat Processing

Retailers should confirm their commitments to sourcing UK lamb this season,...


15 April 2015 | Meat Processing

A leading retailer has apologised after selling imported lamb in a Borders ...


9 April 2015 | Finance

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