April 12, 2005

Fonterra and Clover in venture to penetrate sub-Saharan market

Dairy giants Fonterra of New Zealand and Clover from South Africa are planning a joint venture to be called Clover Fonterra Ingredients.

This comes amid a Clover lay-off of 500 workers, and announcements that it will lower payments to dairy farmers due to an oversupply of milk.

Malcolm Tweed, who heads Fonterra's operations in South Africa said the joint venture will market and distribute milk products in sub-Saharan Africa. That market is currently dominated by companies in the United Kingdom, which hold more than 70 percent share.

Fonterra has had other big ventures in the United States, South America, Australia and Europe, but only had a mild presence in southern Africa till recently.