November 27, 2013

Fonterra Australia finalised the purchase of the assets of Tasmanian yoghurt business, Tamar Valley Dairy, of which the latter is now under full Fonterra ownership and management.

Fonterra has acquired the processing equipment, related services, intellectual property and trademark for the Tamar Valley Dairy brand.

"This is a positive result for Tamar Valley Dairy, the workforce and the community. We are now working hard to fully integrate Tamar Valley Dairy into our manufacturing footprint to create greater efficiencies and scale," said Judith Swales, Fonterra Australia Managing Director.

"This acquisition strengthens Fonterra's position as a leader in the Australian dairy industry, and complements our existing yoghurt portfolio, which includes one of Australia's most loved and market-leading yoghurts, Nestlé SKI. We will continue to work closely with all stakeholders to provide stability and continuity for the business, the wider community and maintain Tamar Valley Dairy's history of innovation," said Swales.

In Tasmania, Fonterra currently operates two manufacturing facilities at Spreyton and Wynyard, is responsible for processing half of Tasmania's milk, collecting over 500 million litres of milk from almost 260 dairy farms each year, and employs 220 people. Over the last two years Fonterra has invested US$20 million in these operations.

About 122 positions of the Tamar Valley Dairy workforce will transition to Fonterra to ensure the right skill-set and expertise are available to ensure continuity of operations and the long-term sustainability of the business, while 18 roles are made redundant.