Dairy Farmers of America (DFA) announced that it would acquire 100% ownership of DairiConcepts, the Cooperative’s joint venture with Fonterra Co-operative Group Limited (Fonterra).
Fonterra and DFA have partnered in DairiConcepts as equal owners since 2000 when the joint venture was formed. DairiConcepts plays a key role in DFA’s strategy to further grow its ingredients division and extend its global marketing outreach, but was viewed as a non-core component of Fonterra’s strategy. The decision was made by both DFA and Fonterra to consolidate ownership.
“Our relationship with Fonterra remains strong,” said Rick Smith, DFA President and Chief Executive Officer. “DairiConcepts has historically generated strong returns for our farmer-owners, and we look forward to continuing to strengthen the business and expand markets for our members’ milk.”
Fonterra will remain a key customer of DairiConcepts, which will operate as a wholly owned subsidiary of DFA once the sale is final on December 31, 2015. DairiConcepts is a manufacturer of cheese, dairy ingredients and dairy flavor systems with eight facilities across the United States. It works with customers both in the United States and around the world as a value-added supplier, committed to creating appropriate lower-cost, quality dairy ingredient solutions. Its dedicated team of professionals focuses on product formulation, testing and packaging, and has proven success in these areas.
Dairy Farmers of America Acquires Sole Ownership of DairiConcepts
Fonterra and DFA have partnered in DairiConcepts as equal owners since 2000 when the joint venture was formed
