Dairy Farmers of America (DFA) announced today 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 remains key customer
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 flavour systems with 8 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.
About Dairy Farmers of America
Dairy Farmers of America is a national dairy marketing cooperative that serves and is owned by more than 14,000 members on more than 8,000 farms in 48 states. DFA also is one of the country's most diversified manufacturers of dairy products, food components and ingredients and is a leader in formulating and packaging shelf-stable dairy products.
DairiConcepts makes innovative cheese and dairy ingredients for the global food industry, specialising in the customisation of powders, concentrates, seasonings, flavour enhancers and hard Italian cheeses with superior flavour delivery. In recent years, DairiConcepts has expanded its business globally to include ingredient markets in North America, South America, Europe and Asia. Its ongoing growth objective is to expand organically and through acquisitions of companies that fit its business model.