Milk processor Fonterra Australia and baby food processor Bellamy’s Australia have entered into a five-year, multi-million dollar agreement to manufacture baby nutritional powders.
Fonterra Oceania managing director Judith Swales said the company was growing its nutritionals business through strategic partnerships which would see the Darnum plant move towards full capacity.
‘‘Our Australian business has particular ingredients strengths in cheese, whey and nutritionals ... and today’s announcement with Bellamy’s Australia — one of the fastest growing infant formula companies — reaffirms our strength in nutritionals,’’ Ms Swales said.
‘‘The Darnum plant is a leading nutritionals plant in Fonterra’s global network.
‘‘Leveraging our Fonterra Research and Development Centre in Palmerston North, the largest dairy innovation centre in the Southern Hemisphere, we will bring innovation to the Darnum plant and the nutritionals market to capture growing demand.’’
Bellamy’s achieved revenue growth of 156 per cent in 2014-15 compared to the previous year.
‘‘The proposed multi-million dollar strategic agreement will help support the growth of Bellamy’s Organic in Australia and abroad, and builds on our strong current relationship,’’ Ms Swales said.
‘‘We are also nearing the finalisation of the Darnum joint venture with Beingmate Baby and Child Food Company Ltd following the recent formal approval by Beingmate’s board and shareholders.’’