June 4, 2007

New Zealand's Fonterra considers processing facility in the Philippines

Fonterra Cooperative Group Ltd., New Zealand's largest company and the world's largest exporter of dairy products, is mulling of establishing a processing facility in the Philippines, according to Agriculture Secretary Arthur Yap.

Yap told the Philippine Daily Inquirer that Fonterra is also considering importing fresh and processed agro-fishery products from the Philippines after it has allowed the entry of Philippine tropical fruits and processed food.

Fonterra is a global dairy business involved in large-scale milk procurement, processing and management, with a supply chain spanning about 140 countries.

Yap also said that during President Gloria Macapagal-Arroyo's state visit to New Zealand this week, the agriculture department received over US$30 million worth of purchase orders from that country. The purchases are to address the Philippines' ability to increase herd stock and production capacity for milk, said Yap.

Agriculture Undersecretary Bernadette Romulo-Puyat meanwhile said the government hoped to tap indirectly the Australian market through New Zealand's leading health food firm Sanitarium Health Food Co.

The Department of Agriculture has entered an agreement with Sanitarium to explore the possibility of Sanitarium's buying Filipino food items and supporting the country's milk feeding program.

Known as a maker of quality health and plant-based foods, Sanitarium manufactures cereals, bread spreads, soy milk products, and a variety of chilled and canned vegetable products. It also has health food shops and vegetarian cafes.